Business Wire | Jan 25, 2022 04:30PM EST

Trustmark Corporation Announces Fourth Quarter and Fiscal Year 2021 Financial Results

Jan. 25, 2022

JACKSON, Miss.--(BUSINESS WIRE)--Jan. 25, 2022--Trustmark Corporation (NASDAQGS:TRMK) reported net income of $26.2 million in the fourth quarter of 2021, representing diluted earnings per share of $0.42. For the full year, Trustmark's net income totaled $147.4 million, representing diluted earnings per share of $2.34. Trustmark's net income in 2021 produced a return on average tangible equity of 10.81% and a return on average assets of 0.86%. Trustmark's Board of Directors declared a quarterly cash dividend of $0.23 per share payable March 15, 2022, to shareholders of record on March 1, 2022.

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2021 Highlights

* Loans held for investment (HFI) increased $423.3 million, or 4.3% * Nonperforming assets declined 10.1% to represent 0.64% of loans HFI and held for sale (HFS) * Recoveries exceeded charge-offs by $3.7 million * Total deposits increased $1.0 billion, or 7.4% * Repurchased $61.8 million, or approximately 1.9 million shares of common stock * Insurance and Wealth Management businesses had a record year with revenue up 7.4% and 11.3%, respectively * Mortgage Banking revenue totaled $63.8 million with loan production exceeding $2.8 billion * Noninterest income totaled $221.9 million and represented 34.7% of total revenue * Completed voluntary early retirement program that reduced workforce by 3.6% * Expanded market optimization efforts with a net reduction of 10 offices during the year * Continued technology investments to enhance efficiency and productivity

Duane A. Dewey, President and CEO, commented, "Our banking and mortgage banking businesses performed well while our insurance and wealth management businesses achieved record results. We experienced significant loan and deposit growth, and credit quality remained strong. While we continue to navigate the challenging low interest rate environment, we remain committed to positioning the company for continued long-term success. Our balance sheet is well positioned for rising interest rates. We will continue investments in technology to improve efficiency and broaden our reach through digital marketing and product delivery. Trustmark is well-positioned to serve and expand its customer base and create long-term value for its shareholders."

Balance Sheet Management

* Loans HFI increased $72.9 million, or 0.7%, during the quarter * Investment securities increased $128.9 million, or 3.7%, as excess liquidity was deployed linked-quarter * Total deposits increased $164.3 million, or 1.1%, linked-quarter * Maintained strong capital position with CET1 ratio of 11.29% and total risk-based capital ratio of 13.55%

Loans HFI totaled $10.2 billion at December 31, 2021, reflecting an increase of $72.9 million, or 0.7%, linked-quarter and $423.3 million, or 4.3%, year-over-year. The linked-quarter growth primarily reflects increases in commercial and industrial loans, 1-4 family mortgage loans, other loans, and loans secured by nonfarm, nonresidential properties which were offset in part by a decline in other real estate secured loans. Trustmark's loan portfolio remains well-diversified by loan type and geography.

Deposits totaled $15.1 billion at December 31, 2021, up $164.3 million, or 1.1%, from the prior quarter and $1.0 billion, or 7.4%, year-over-year. Trustmark continues to maintain a strong liquidity position as loans HFI represented 67.9% of total deposits at year end 2021. Noninterest bearing deposits represented 31.6% of total deposits at December 31, 2021. Interest-bearing deposit costs totaled 0.13% for the fourth quarter, a decrease of 1 basis point linked-quarter. The total cost of interest-bearing liabilities was 0.19% for the fourth quarter of 2021, a decrease of 2 basis points from the prior quarter.

During the fourth quarter, Trustmark repurchased $27.1 million, or approximately 816 thousand of its common shares. During the twelve months ended December 31, 2021, Trustmark repurchased $61.8 million, or approximately 1.9 million of its common shares. As previously announced, Trustmark's Board of Directors authorized a stock repurchase program effective January 1, 2022, under which $100 million of Trustmark's outstanding shares may be acquired through December 31, 2022. The repurchase program, which is subject to market conditions and management discretion, will continue to be implemented through open market repurchases or privately negotiated transactions. At December 31, 2021, Trustmark's tangible equity to tangible assets ratio was 7.86%, while the total risk-based capital ratio was 13.55%.

Credit Quality

* Allowance for credit losses (ACL) represented 0.97% of loans HFI and 500.85% of nonperforming loans, excluding individually evaluated loans at year-end * Net charge-offs totaled $101 thousand in the fourth quarter * Loans remaining under a COVID-19 related concession represented approximately 1 basis point of loans HFI at December 31, 2021

Nonaccrual loans totaled $62.7 million at December 31, 2021, a decrease of $3.5 million from the prior quarter and $430 thousand year-over-year. Other real estate totaled $4.6 million, reflecting a $1.7 million decrease from the prior quarter and a $7.1 million decline from the prior year. Collectively, nonperforming assets totaled $67.3 million, reflecting a linked-quarter decrease of 7.2% and year-over-year reduction of 10.1%.

The provision for credit losses for loans HFI was a negative $4.5 million in the fourth quarter. Negative provisioning was primarily due to improvements in credit quality and economic forecasts. The provision for credit losses for off-balance sheet credit exposures was $2.9 million in the fourth quarter, primarily driven by increases in unfunded amounts. Collectively, the provision for credit losses totaled a negative $1.6 million in the fourth quarter compared to a negative $3.5 million in the prior quarter and a negative $5.5 million in the fourth quarter of 2020.

Allocation of Trustmark's $99.5 million ACL on loans HFI represented 1.00% of commercial loans and 0.87% of consumer and home mortgage loans, resulting in an ACL to total loans HFI of 0.97% at December 31, 2021. Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio.

Revenue Generation

* Excluding Paycheck Protection Program (PPP) interest and fees, net interest income (FTE) increased $1.2 million, or 1.2%, linked-quarter * The net interest margin (FTE) totaled 2.53% in fourth quarter; excluding interest and fees on PPP loans and Federal Reserve Bank balance, net interest margin (FTE) was 2.82% * Noninterest income totaled $50.8 million and represented 34.1% of total revenue in fourth quarter

Revenue in the fourth quarter totaled $149.1 million, a decrease of 2.2% from the prior quarter and 16.0% from the same quarter in the prior year. The linked-quarter decline primarily reflects lower mortgage banking revenue while the year-over-year decline is attributed to lower net interest income and reduced mortgage banking revenue. In 2021, revenue totaled $640.3 million, a decrease of 8.7% from the prior year.

Net interest income (FTE) in the fourth quarter totaled $101.2 million, resulting in a net interest margin of 2.53%. The net interest margin, excluding PPP loans and Federal Reserve Bank balance, was 2.82%, down 8 basis points from the prior quarter, significantly influenced by the growth of the investment securities portfolio. Continued low interest rates decreased the yield on the loans held for investment and held for sale portfolio as well as the securities portfolio and were partially offset by lower costs of interest-bearing deposits.

Noninterest income in the fourth quarter totaled $50.8 million, a decrease of $3.4 million from the prior quarter and $15.4 million from the prior year. The linked-quarter change reflects an increase in service charges on deposit accounts which was more than offset by a decline in mortgage banking revenue, a seasonal decline in insurance revenue, and a reduction in other income. The decrease in noninterest income year-over-year is principally due to lower mortgage banking revenue.

Mortgage loan production in the fourth quarter totaled $590.7 million, a decline of 16.7% linked-quarter and 25.1% year-over-year. Mortgage banking revenue totaled $11.6 million in the fourth quarter, a decrease of $2.4 million from the prior quarter and $16.5 million year-over-year. The linked-quarter decline is attributable to reduced spreads which resulted in lower net gains on sales of mortgage loans in the secondary market offset in part by increased net hedge ineffectiveness. In 2021, mortgage loan production totaled $2.8 billion, down 6.1% from the record level set the prior year. Mortgage banking revenue totaled $63.8 million in 2021, compared to $125.8 million in the prior year.

Insurance revenue in the fourth quarter totaled $11.7 million, a seasonal decline of $417 thousand from the prior quarter and an increase of $1.5 million from the prior year. Insurance revenue in 2021 totaled $48.5 million, up $3.3 million, or 7.4%, from the prior year. The solid performance during the year reflects an expanded producer workforce as well as the realization of operational efficiencies from investments in technology and improved processes.

Wealth management revenue totaled $8.8 million in the fourth quarter, down 3.5% from the prior quarter and up 11.7% from the prior year. In 2021, wealth management revenue totaled $35.2 million, an increase of 11.3% from the prior year. During 2021, Trustmark continued to enhance its competitive positioning and efficiency of its wealth management businesses as well as expand its Private Banking capabilities in key markets.

Noninterest Expense

* Adjusted noninterest expense, which excludes ORE expense, amortization of intangibles, charitable contributions resulting in state tax credits, costs associated with the voluntary early retirement program and regulatory charges increased $1.6 million, or 1.3%, from the prior quarter. Please refer to the Consolidated Financial Information, Footnote 10 - Non-GAAP Financial Measures.

Adjusted noninterest expense in the fourth quarter was $118.2 million, up $1.6 million, or 1.3%, from the prior quarter. Salaries and employee benefits expense in the fourth quarter totaled $68.3 million. Excluding the $5.6 million charge associated with the voluntary early retirement program in the third quarter, salary and employee benefits expense declined $754 thousand, or 1.1%, linked-quarter.

Total services and fees increased $598 thousand during the fourth quarter due to continued investments in technology and higher professional fees. Other real estate expense, net declined $1.0 million during the fourth quarter to $336 thousand. Other expense totaled $14.6 million in the fourth quarter. Excluding the $5.0 million regulatory settlement charge in the prior quarter, other expense increased $1.1 million linked-quarter principally due to increased operational losses.

During 2021, Trustmark consolidated 15 offices, expanded deployment of myTeller interactive teller machine technology, and opened five offices designed to efficiently serve and expand customer relationships.

"Looking forward, Trustmark will continue to focus upon efficiency, growth and innovation opportunities. We continue to pursue opportunities to redesign workflows and restructure the organization to further leverage investments in technology that will broaden our reach, enhance the customer experience, and improve efficiency. We remain focused on providing the financial services and advice our customers have come to expect while building long-term value for our shareholders," said Dewey.

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, January 26, 2022, at 8:30 a.m. Central Time to discuss the Corporation's financial results. Interested parties may listen to the conference call by dialing (877) 317-3051 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com. A replay of the conference call will also be available through Wednesday, February 9, 2022, in archived format at the same web address or by calling (877) 344-7529, passcode 4362420.

Trustmark is a financial services company providing banking and financial solutions through 180 offices in Alabama, Florida, Mississippi, Tennessee and Texas.

Forward-Looking Statements

Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as "may," "hope," "will," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "project," "potential," "seek," "continue," "could," "would," "future" or the negative of those terms or other words of similar meaning. You should read statements that contain these words carefully because they discuss our future expectations or state other "forward-looking" information. These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things, and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements. You should be aware that the occurrence of the events described under the caption "Risk Factors" in Trustmark's filings with the Securities and Exchange Commission (SEC) could have an adverse effect on our business, results of operations and financial condition. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected. Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the novel coronavirus (COVID-19) pandemic, and also by the effectiveness of varying governmental responses in ameliorating the impact of the pandemic on our customers and the economies where they operate.

Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels and slowdowns in economic growth, our ability to manage the impact of the COVID-19 pandemic on our markets and our customers, as well as the effectiveness of actions of federal, state and local governments and agencies (including the Board of Governors of the Federal Reserve System (FRB)) to mitigate its spread and economic impact, local, state and national economic and market conditions, conditions in the housing and real estate markets in the regions in which Trustmark operates and the extent and duration of the current volatility in the credit and financial markets, levels of and volatility in crude oil prices, changes in our ability to measure the fair value of assets in our portfolio, material changes in the level and/or volatility of market interest rates, the performance and demand for the products and services we offer, including the level and timing of withdrawals from our deposit accounts, the costs and effects of litigation and of unexpected or adverse outcomes in such litigation, our ability to attract noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions, including the potential impact of issues related to the European financial system and monetary and other governmental actions designed to address credit, securities, and/or commodity markets, the enactment of legislation and changes in existing regulations or enforcement practices or the adoption of new regulations, changes in accounting standards and practices, including changes in the interpretation of existing standards, that affect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of our borrowers, changes in our ability to control expenses, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, cyber-attacks and other breaches which could affect our information system security, natural disasters, environmental disasters, pandemics or other health crises, acts of war or terrorism, and other risks described in our filings with the SEC.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Except as required by law, we undertake no obligation to update or revise any of this information, whether as the result of new information, future events or developments or otherwise.

TRUSTMARKCORPORATION ANDSUBSIDIARIESCONSOLIDATEDFINANCIALINFORMATIONDecember 31, 2021($ in thousands)(unaudited) Linked Quarter Year over YearQUARTERLY AVERAGE 12/31/2021 9/30/2021 12/31/2020 $ Change % $ Change %BALANCES Change ChangeSecurities $ 3,156,740 $ 2,686,765 $ 1,902,162 $ 469,975 17.5 % $ 1,254,578 66.0 %AFS-taxableSecurities 5,143 5,159 5,206 (16 ) -0.3 % (63 ) -1.2 %AFS-nontaxableSecurities 364,038 401,685 550,563 (37,647 ) -9.4 % (186,525 ) -33.9 %HTM-taxableSecurities 7,618 8,641 24,752 (1,023 ) -11.8 % (17,134 ) -69.2 %HTM-nontaxableTotal securities 3,533,539 3,102,250 2,482,683 431,289 13.9 % 1,050,856 42.3 %

Paycheck protection 42,749 122,176 875,098 (79,427 ) -65.0 % (832,349 ) -95.1 %program loans (PPP)Loans (includes 10,487,679 10,389,826 10,231,671 97,853 0.9 % 256,008 2.5 %loans held forsale)Fed funds sold and 58 69 303 (11 ) -15.9 % (245 ) -80.9 %reverse repurchasesOther earning 1,839,498 2,038,515 860,540 (199,017 ) -9.8 % 978,958 n/m assetsTotal earning 15,903,523 15,652,836 14,450,295 250,687 1.6 % 1,453,228 10.1 %assetsAllowance forcredit losses (104,148 ) (104,857 ) (124,088 ) 709 0.7 % 19,940 16.1 %(ACL), loans heldfor investment(LHFI)Other assets 1,570,501 1,602,611 1,620,694 (32,110 ) -2.0 % (50,193 ) -3.1 %

Total assets $ 17,369,876 $ 17,150,590 $ 15,946,901 $ 219,286 1.3 % $ 1,422,975 8.9 %

Interest-bearing $ 4,353,599 $ 4,224,717 $ 3,649,590 $ 128,882 3.1 % $ 704,009 19.3 %demand depositsSavings deposits 4,585,624 4,617,683 4,350,783 (32,059 ) -0.7 % 234,841 5.4 %

Time deposits 1,220,083 1,258,829 1,436,677 (38,746 ) -3.1 % (216,594 ) -15.1 %

Total 10,159,306 10,101,229 9,437,050 58,077 0.6 % 722,256 7.7 %interest-bearingdepositsFed funds purchased 201,856 147,635 170,474 54,221 36.7 % 31,382 18.4 %and repurchasesOther borrowings 94,328 109,735 173,525 (15,407 ) -14.0 % (79,197 ) -45.6 %

Subordinated notes 123,007 122,951 42,828 56 0.0 % 80,179 n/m

Junior subordinated 61,856 61,856 61,856 - 0.0 % - 0.0 %debt securitiesTotal 10,640,353 10,543,406 9,885,733 96,947 0.9 % 754,620 7.6 %interest-bearingliabilitiesNoninterest-bearing 4,679,951 4,566,924 4,100,849 113,027 2.5 % 579,102 14.1 %depositsOther liabilities 291,449 257,956 235,284 33,493 13.0 % 56,165 23.9 %

Total liabilities 15,611,753 15,368,286 14,221,866 243,467 1.6 % 1,389,887 9.8 %

Shareholders' 1,758,123 1,782,304 1,725,035 (24,181 ) -1.4 % 33,088 1.9 %equityTotal liabilities $ 17,369,876 $ 17,150,590 $ 15,946,901 $ 219,286 1.3 % $ 1,422,975 8.9 %and equity n/m - percentage changes greater than +/- 100% are considered not meaningful See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONDecember 31, 2021($ in thousands)(unaudited)Linked QuarterYear over YearPERIOD END BALANCES12/31/20219/30/202112/31/2020$ Change% Change$ Change% ChangeCash and due from banks$

2,266,829

$

2,175,058

$

1,952,504

$

91,771

4.2

%

$

314,325

16.1

%

Fed funds sold and reverse repurchases-

-

50

-

n/m

(50

)

-100.0

%

Securities available for sale3,238,877

3,057,605

1,991,815

181,272

5.9

%

1,247,062

62.6

%

Securities held to maturity342,537

394,905

538,072

(52,368

)

-13.3

%

(195,535

)

-36.3

%

PPP loans33,336

46,486

610,134

(13,150

)

-28.3

%

(576,798

)

-94.5

%

Loans held for sale (LHFS)275,706

335,339

446,951

(59,633

)

-17.8

%

(171,245

)

-38.3

%

Loans held for investment (LHFI)10,247,829

10,174,899

9,824,524

72,930

0.7

%

423,305

4.3

%

ACL LHFI(99,457

)

(104,073

)

(117,306

)

4,616

4.4

%

17,849

15.2

%

Net LHFI10,148,372

10,070,826

9,707,218

77,546

0.8

%

441,154

4.5

%

Premises and equipment, net205,644

201,937

194,278

3,707

1.8

%

11,366

5.9

%

Mortgage servicing rights87,687

84,101

66,464

3,586

4.3

%

21,223

31.9

%

Goodwill384,237

384,237

385,270

-

0.0

%

(1,033

)

-0.3

%

Identifiable intangible assets5,074

5,621

7,390

(547

)

-9.7

%

(2,316

)

-31.3

%

Other real estate4,557

6,213

11,651

(1,656

)

-26.7

%

(7,094

)

-60.9

%

Operating lease right-of-use assets34,603

34,689

30,901

(86

)

-0.2

%

3,702

12.0

%

Other assets568,177

567,627

609,142

550

0.1

%

(40,965

)

-6.7

%

Total assets$

17,595,636

$

17,364,644

$

16,551,840

$

230,992

1.3

%

$

1,043,796

6.3

%

Deposits:Noninterest-bearing$

4,771,065

$

4,987,885

$

4,349,010

$

(216,820

)

-4.3

%

$

422,055

9.7

%

Interest-bearing10,316,095

9,934,954

9,699,754

381,141

3.8

%

616,341

6.4

%

Total deposits15,087,160

14,922,839

14,048,764

164,321

1.1

%

1,038,396

7.4

%

Fed funds purchased and repurchases238,577

146,417

164,519

92,160

62.9

%

74,058

45.0

%

Other borrowings91,025

94,889

168,252

(3,864

)

-4.1

%

(77,227

)

-45.9

%

Subordinated notes123,042

122,987

122,921

55

0.0

%

121

0.1

%

Junior subordinated debt securities61,856

61,856

61,856

-

0.0

%

-

0.0

%

ACL on off-balance sheet credit exposures35,623

32,684

38,572

2,939

9.0

%

(2,949

)

-7.6

%

Operating lease liabilities36,468

36,531

32,290

(63

)

-0.2

%

4,178

12.9

%

Other liabilities180,574

177,494

173,549

3,080

1.7

%

7,025

4.0

%

Total liabilities15,854,325

15,595,697

14,810,723

258,628

1.7

%

1,043,602

7.0

%

Common stock12,845

13,014

13,215

(169

)

-1.3

%

(370

)

-2.8

%

Capital surplus175,913

201,837

233,120

(25,924

)

-12.8

%

(57,207

)

-24.5

%

Retained earnings1,585,113

1,573,176

1,495,833

11,937

0.8

%

89,280

6.0

%

Accumulated other comprehensive income (loss), net of tax(32,560

)

(19,080

)

(1,051

)

(13,480

)

-70.6

%

(31,509

)

n/m

Total shareholders' equity1,741,311

1,768,947

1,741,117

(27,636

)

-1.6

%

194

0.0

%

Total liabilities and equity$

17,595,636

$

17,364,644

$

16,551,840

$

230,992

1.3

%

$

1,043,796

6.3

%

n/m - percentage changes greater than +/- 100% are considered not meaningfulSee Notes to Consolidated FinancialsTRUSTMARKCORPORATION AND SUBSIDIARIESCONSOLIDATEDFINANCIAL INFORMATIONDecember 31, 2021 ($ in thousands) (unaudited) Linked Quarter Year over YearPERIOD END BALANCES 12/31/2021 9/30/2021 12/31/2020 $ Change % $ Change % Change ChangeCash and due from $ 2,266,829 $ 2,175,058 $ 1,952,504 $ 91,771 4.2 % $ 314,325 16.1 %banksFed funds sold and - - 50 - n/m (50 ) -100.0 %reverse repurchasesSecurities 3,238,877 3,057,605 1,991,815 181,272 5.9 % 1,247,062 62.6 %available for saleSecurities held to 342,537 394,905 538,072 (52,368 ) -13.3 % (195,535 ) -36.3 %maturityPPP loans 33,336 46,486 610,134 (13,150 ) -28.3 % (576,798 ) -94.5 %

Loans held for sale 275,706 335,339 446,951 (59,633 ) -17.8 % (171,245 ) -38.3 %(LHFS)Loans held for 10,247,829 10,174,899 9,824,524 72,930 0.7 % 423,305 4.3 %investment (LHFI)ACL LHFI (99,457 ) (104,073 ) (117,306 ) 4,616 4.4 % 17,849 15.2 %

Net LHFI 10,148,372 10,070,826 9,707,218 77,546 0.8 % 441,154 4.5 %

Premises and 205,644 201,937 194,278 3,707 1.8 % 11,366 5.9 %equipment, netMortgage servicing 87,687 84,101 66,464 3,586 4.3 % 21,223 31.9 %rightsGoodwill 384,237 384,237 385,270 - 0.0 % (1,033 ) -0.3 %

Identifiable 5,074 5,621 7,390 (547 ) -9.7 % (2,316 ) -31.3 %intangible assetsOther real estate 4,557 6,213 11,651 (1,656 ) -26.7 % (7,094 ) -60.9 %

Operating lease 34,603 34,689 30,901 (86 ) -0.2 % 3,702 12.0 %right-of-use assetsOther assets 568,177 567,627 609,142 550 0.1 % (40,965 ) -6.7 %

Total assets $ 17,595,636 $ 17,364,644 $ 16,551,840 $ 230,992 1.3 % $ 1,043,796 6.3 %

Deposits: Noninterest-bearing $ 4,771,065 $ 4,987,885 $ 4,349,010 $ (216,820 ) -4.3 % $ 422,055 9.7 %

Interest-bearing 10,316,095 9,934,954 9,699,754 381,141 3.8 % 616,341 6.4 %

Total deposits 15,087,160 14,922,839 14,048,764 164,321 1.1 % 1,038,396 7.4 %

Fed funds purchased 238,577 146,417 164,519 92,160 62.9 % 74,058 45.0 %and repurchasesOther borrowings 91,025 94,889 168,252 (3,864 ) -4.1 % (77,227 ) -45.9 %

Subordinated notes 123,042 122,987 122,921 55 0.0 % 121 0.1 %

Junior subordinated 61,856 61,856 61,856 - 0.0 % - 0.0 %debt securitiesACL on off-balance 35,623 32,684 38,572 2,939 9.0 % (2,949 ) -7.6 %sheet credit exposuresOperating lease 36,468 36,531 32,290 (63 ) -0.2 % 4,178 12.9 %liabilitiesOther liabilities 180,574 177,494 173,549 3,080 1.7 % 7,025 4.0 %

Total liabilities 15,854,325 15,595,697 14,810,723 258,628 1.7 % 1,043,602 7.0 %

Common stock 12,845 13,014 13,215 (169 ) -1.3 % (370 ) -2.8 %

Capital surplus 175,913 201,837 233,120 (25,924 ) -12.8 % (57,207 ) -24.5 %

Retained earnings 1,585,113 1,573,176 1,495,833 11,937 0.8 % 89,280 6.0 %

Accumulated othercomprehensive (32,560 ) (19,080 ) (1,051 ) (13,480 ) -70.6 % (31,509 ) n/m income (loss), netof taxTotal shareholders' 1,741,311 1,768,947 1,741,117 (27,636 ) -1.6 % 194 0.0 %equityTotal liabilities $ 17,595,636 $ 17,364,644 $ 16,551,840 $ 230,992 1.3 % $ 1,043,796 6.3 %and equity n/m - percentage changes greater than +/- 100% are considered not meaningful See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONDecember 31, 2021($ in thousands except per share data)(unaudited)Quarter EndedLinked QuarterYear over YearINCOME STATEMENTS12/31/20219/30/202112/31/2020$ Change% Change$ Change% ChangeInterest and fees on LHFS & LHFI-FTE$

94,137

$

94,101

$

96,453

$

36

0.0

%

$

(2,316

)

-2.4

%

Interest and fees on PPP loans397

1,533

14,870

(1,136

)

-74.1

%

(14,473

)

-97.3

%

Interest on securities-taxable10,796

9,973

9,998

823

8.3

%

798

8.0

%

Interest on securities-tax exempt-FTE123

132

293

(9

)

-6.8

%

(170

)

-58.0

%

Interest on fed funds sold and reverse repurchases-

-

-

-

n/m

-

n/m

Other interest income826

949

249

(123

)

-13.0

%

577

n/m

Total interest income-FTE106,279

106,688

121,863

(409

)

-0.4

%

(15,584

)

-12.8

%

Interest on deposits3,401

3,691

6,363

(290

)

-7.9

%

(2,962

)

-46.6

%

Interest on fed funds purchased and repurchases66

51

56

15

29.4

%

10

17.9

%

Other interest expense1,580

1,733

1,127

(153

)

-8.8

%

453

40.2

%

Total interest expense5,047

5,475

7,546

(428

)

-7.8

%

(2,499

)

-33.1

%

Net interest income-FTE101,232

101,213

114,317

19

0.0

%

(13,085

)

-11.4

%

Provision for credit losses, LHFI(4,515

)

(2,492

)

(4,413

)

(2,023

)

81.2

%

(102

)

-2.3

%

Provision for credit losses, off-balance sheet credit exposures (1)2,939

(1,049

)

(1,087

)

3,988

n/m

4,026

n/m

Net interest income after provision-FTE102,808

104,754

119,817

(1,946

)

-1.9

%

(17,009

)

-14.2

%

Service charges on deposit accounts9,366

8,911

8,283

455

5.1

%

1,083

13.1

%

Bank card and other fees8,340

8,549

9,107

(209

)

-2.4

%

(767

)

-8.4

%

Mortgage banking, net11,609

14,004

28,155

(2,395

)

-17.1

%

(16,546

)

-58.8

%

Insurance commissions11,716

12,133

10,196

(417

)

-3.4

%

1,520

14.9

%

Wealth management8,757

9,071

7,838

(314

)

-3.5

%

919

11.7

%

Other, net979

1,481

2,538

(502

)

-33.9

%

(1,559

)

-61.4

%

Total noninterest income50,767

54,149

66,117

(3,382

)

-6.2

%

(15,350

)

-23.2

%

Salaries and employee benefits68,258

74,623

69,660

(6,365

)

-8.5

%

(1,402

)

-2.0

%

Services and fees22,904

22,306

22,327

598

2.7

%

577

2.6

%

Net occupancy-premises6,816

6,854

6,616

(38

)

-0.6

%

200

3.0

%

Equipment expense6,585

5,941

6,213

644

10.8

%

372

6.0

%

Other real estate expense, net336

1,357

(812

)

(1,021

)

-75.2

%

1,148

n/m

Other expense14,570

18,519

15,890

(3,949

)

-21.3

%

(1,320

)

-8.3

%

Total noninterest expense119,469

129,600

119,894

(10,131

)

-7.8

%

(425

)

-0.4

%

Income before income taxes and tax eq adj34,106

29,303

66,040

4,803

16.4

%

(31,934

)

-48.4

%

Tax equivalent adjustment2,906

2,947

2,939

(41

)

-1.4

%

(33

)

-1.1

%

Income before income taxes31,200

26,356

63,101

4,844

18.4

%

(31,901

)

-50.6

%

Income taxes4,978

5,156

11,884

(178

)

-3.5

%

(6,906

)

-58.1

%

Net income$

26,222

$

21,200

$

51,217

$

5,022

23.7

%

$

(24,995

)

-48.8

%

Per share dataEarnings per share - basic$

0.42

$

0.34

$

0.81

$

0.08

23.5

%

$

(0.39

)

-48.1

%

Earnings per share - diluted$

0.42

$

0.34

$

0.81

$

0.08

23.5

%

$

(0.39

)

-48.1

%

Dividends per share$

0.23

$

0.23

$

0.23

-

0.0

%

-

0.0

%

Weighted average shares outstandingBasic62,037,884

62,521,684

63,424,219

Diluted62,264,983

62,730,157

63,616,767

Period end shares outstanding61,648,679

62,461,832

63,424,526

(1) During the second quarter of 2021, Trustmark reclassified its credit loss expense related to off-balance sheet credit exposures from noninterest expense to provision for credit losses, off-balance sheet credit exposures. Prior periods have been reclassified accordingly.n/m - percentage changes greater than +/- 100% are considered not meaningfulSee Notes to Consolidated FinancialsTRUSTMARKCORPORATION ANDSUBSIDIARIESCONSOLIDATEDFINANCIALINFORMATIONDecember 31, 2021($ in thousandsexcept per sharedata)(unaudited) Quarter Ended Linked Quarter Year over YearINCOME STATEMENTS 12/31/2021 9/30/2021 12/31/2020 $ Change % $ Change % Change ChangeInterest and fees $ 94,137 $ 94,101 $ 96,453 $ 36 0.0 % $ (2,316 ) -2.4 %on LHFS & LHFI-FTEInterest and fees 397 1,533 14,870 (1,136 ) -74.1 % (14,473 ) -97.3 %on PPP loansInterest on 10,796 9,973 9,998 823 8.3 % 798 8.0 %securities-taxableInterest on 123 132 293 (9 ) -6.8 % (170 ) -58.0 %securities-taxexempt-FTEInterest on fedfunds sold and - - - - n/m - n/m reverserepurchasesOther interest 826 949 249 (123 ) -13.0 % 577 n/m incomeTotal interest 106,279 106,688 121,863 (409 ) -0.4 % (15,584 ) -12.8 %income-FTEInterest on 3,401 3,691 6,363 (290 ) -7.9 % (2,962 ) -46.6 %depositsInterest on fed 66 51 56 15 29.4 % 10 17.9 %funds purchasedand repurchasesOther interest 1,580 1,733 1,127 (153 ) -8.8 % 453 40.2 %expenseTotal interest 5,047 5,475 7,546 (428 ) -7.8 % (2,499 ) -33.1 %expenseNet interest 101,232 101,213 114,317 19 0.0 % (13,085 ) -11.4 %income-FTEProvision for (4,515 ) (2,492 ) (4,413 ) (2,023 ) 81.2 % (102 ) -2.3 %credit losses,LHFIProvision forcredit losses, 2,939 (1,049 ) (1,087 ) 3,988 n/m 4,026 n/m off-balance sheetcredit exposures(1)Net interest 102,808 104,754 119,817 (1,946 ) -1.9 % (17,009 ) -14.2 %income afterprovision-FTEService charges on 9,366 8,911 8,283 455 5.1 % 1,083 13.1 %deposit accountsBank card and 8,340 8,549 9,107 (209 ) -2.4 % (767 ) -8.4 %other feesMortgage banking, 11,609 14,004 28,155 (2,395 ) -17.1 % (16,546 ) -58.8 %netInsurance 11,716 12,133 10,196 (417 ) -3.4 % 1,520 14.9 %commissionsWealth management 8,757 9,071 7,838 (314 ) -3.5 % 919 11.7 %

Other, net 979 1,481 2,538 (502 ) -33.9 % (1,559 ) -61.4 %

Total noninterest 50,767 54,149 66,117 (3,382 ) -6.2 % (15,350 ) -23.2 %incomeSalaries and 68,258 74,623 69,660 (6,365 ) -8.5 % (1,402 ) -2.0 %employee benefitsServices and fees 22,904 22,306 22,327 598 2.7 % 577 2.6 %

Net 6,816 6,854 6,616 (38 ) -0.6 % 200 3.0 %occupancy-premisesEquipment expense 6,585 5,941 6,213 644 10.8 % 372 6.0 %

Other real estate 336 1,357 (812 ) (1,021 ) -75.2 % 1,148 n/m expense, netOther expense 14,570 18,519 15,890 (3,949 ) -21.3 % (1,320 ) -8.3 %

Total noninterest 119,469 129,600 119,894 (10,131 ) -7.8 % (425 ) -0.4 %expenseIncome before 34,106 29,303 66,040 4,803 16.4 % (31,934 ) -48.4 %income taxes andtax eq adjTax equivalent 2,906 2,947 2,939 (41 ) -1.4 % (33 ) -1.1 %adjustmentIncome before 31,200 26,356 63,101 4,844 18.4 % (31,901 ) -50.6 %income taxesIncome taxes 4,978 5,156 11,884 (178 ) -3.5 % (6,906 ) -58.1 %

Net income $ 26,222 $ 21,200 $ 51,217 $ 5,022 23.7 % $ (24,995 ) -48.8 %

Per share dataEarnings per share $ 0.42 $ 0.34 $ 0.81 $ 0.08 23.5 % $ (0.39 ) -48.1 %- basic Earnings per share $ 0.42 $ 0.34 $ 0.81 $ 0.08 23.5 % $ (0.39 ) -48.1 %- diluted Dividends per $ 0.23 $ 0.23 $ 0.23 - 0.0 % - 0.0 %share Weighted averageshares outstandingBasic 62,037,884 62,521,684 63,424,219

Diluted 62,264,983 62,730,157 63,616,767

Period end shares 61,648,679 62,461,832 63,424,526 outstanding (1) During the second quarter of 2021, Trustmark reclassified its credit lossexpense related to off-balance sheet credit exposures from noninterest expenseto provision for credit losses, off-balance sheet credit exposures. Priorperiods have been reclassified accordingly.

n/m - percentage changes greater than +/- 100% are considered not meaningful See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONDecember 31, 2021($ in thousands)(unaudited)Quarter EndedLinked QuarterYear over YearNONPERFORMING ASSETS (1)12/31/20219/30/202112/31/2020$ Change% Change$ Change% ChangeNonaccrual LHFIAlabama$

8,182

$

9,223

$

9,221

$

(1,041

)

-11.3

%

$

(1,039

)

-11.3

%

Florida313

381

572

(68

)

-17.8

%

(259

)

-45.3

%

Mississippi (2)21,636

22,898

35,015

(1,262

)

-5.5

%

(13,379

)

-38.2

%

Tennessee (3)10,501

10,356

12,572

145

1.4

%

(2,071

)

-16.5

%

Texas22,066

23,382

5,748

(1,316

)

-5.6

%

16,318

n/m

Total nonaccrual LHFI62,698

66,240

63,128

(3,542

)

-5.3

%

(430

)

-0.7

%

Other real estateAlabama-

613

3,271

(613

)

-100.0

%

(3,271

)

-100.0

%

Florida-

-

-

-

n/m

-

n/m

Mississippi (2)4,557

5,600

8,330

(1,043

)

-18.6

%

(3,773

)

-45.3

%

Tennessee (3)-

-

50

-

n/m

(50

)

-100.0

%

Texas-

-

-

-

n/m

-

n/m

Total other real estate4,557

6,213

11,651

(1,656

)

-26.7

%

(7,094

)

-60.9

%

Total nonperforming assets$

67,255

$

72,453

$

74,779

$

(5,198

)

-7.2

%

$

(7,524

)

-10.1

%

LOANS PAST DUE OVER 90 DAYS (1)LHFI$

2,114

$

625

$

1,576

$

1,489

n/m

$

538

34.1

%

LHFS-Guaranteed GNMA serviced loans(no obligation to repurchase)$

69,894

$

75,091

$

119,409

$

(5,197

)

-6.9

%

$

(49,515

)

-41.5

%

Quarter EndedLinked QuarterYear over YearACL LHFI (1)12/31/20219/30/202112/31/2020$ Change% Change$ Change% ChangeBeginning Balance$

104,073

$

104,032

$

122,010

$

41

0.0

%

$

(17,937

)

-14.7

%

CECL adoption adjustments:LHFI-

-

-

-

n/m

-

n/m

Acquired loan transfers-

-

-

-

n/m

-

n/m

Provision for credit losses, LHFI(4,515

)

(2,492

)

(4,413

)

(2,023

)

-81.2

%

(102

)

-2.3

%

Charge-offs(2,616

)

(1,586

)

(2,797

)

(1,030

)

-64.9

%

181

6.5

%

Recoveries2,515

4,119

2,506

(1,604

)

-38.9

%

9

0.4

%

Net (charge-offs) recoveries(101

)

2,533

(291

)

(2,634

)

n/m

190

-65.3

%

Ending Balance$

99,457

$

104,073

$

117,306

$

(4,616

)

-4.4

%

$

(17,849

)

-15.2

%

NET (CHARGE-OFFS) RECOVERIES (1)Alabama$

747

$

247

$

(1,011

)

$

500

n/m

$

1,758

n/m

Florida(32

)

356

66

(388

)

n/m

(98

)

n/m

Mississippi (2)(683

)

1,436

332

(2,119

)

n/m

(1,015

)

n/m

Tennessee (3)(130

)

(8

)

303

(122

)

n/m

(433

)

n/m

Texas(3

)

502

19

(505

)

n/m

(22

)

n/m

Total net (charge-offs) recoveries$

(101

)

$

2,533

$

(291

)

$

(2,634

)

n/m

$

190

65.3

%

(1) Excludes PPP loans.(2) Mississippi includes Central and Southern Mississippi Regions.(3) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.n/m - percentage changes greater than +/- 100% are considered not meaningfulSee Notes to Consolidated FinancialsTRUSTMARKCORPORATION ANDSUBSIDIARIESCONSOLIDATEDFINANCIALINFORMATIONDecember 31,2021($ inthousands)(unaudited) Quarter Ended Linked Quarter Year over YearNONPERFORMING 12/31/2021 9/30/2021 12/31/2020 $ Change % Change $ Change % ChangeASSETS (1)Nonaccrual LHFIAlabama $ 8,182 $ 9,223 $ 9,221 $ (1,041 ) -11.3 % $ (1,039 ) -11.3 %

Florida 313 381 572 (68 ) -17.8 % (259 ) -45.3 %

Mississippi (2) 21,636 22,898 35,015 (1,262 ) -5.5 % (13,379 ) -38.2 %

Tennessee (3) 10,501 10,356 12,572 145 1.4 % (2,071 ) -16.5 %

Texas 22,066 23,382 5,748 (1,316 ) -5.6 % 16,318 n/m

Total 62,698 66,240 63,128 (3,542 ) -5.3 % (430 ) -0.7 %nonaccrual LHFIOther realestateAlabama - 613 3,271 (613 ) -100.0 % (3,271 ) -100.0 %

Florida - - - - n/m - n/m

Mississippi (2) 4,557 5,600 8,330 (1,043 ) -18.6 % (3,773 ) -45.3 %

Tennessee (3) - - 50 - n/m (50 ) -100.0 %

Texas - - - - n/m - n/m

Total other 4,557 6,213 11,651 (1,656 ) -26.7 % (7,094 ) -60.9 %real estateTotal $ 67,255 $ 72,453 $ 74,779 $ (5,198 ) -7.2 % $ (7,524 ) -10.1 %nonperformingassets LOANS PAST DUEOVER 90 DAYS(1)LHFI $ 2,114 $ 625 $ 1,576 $ 1,489 n/m $ 538 34.1 %

LHFS-GuaranteedGNMA servicedloans(no obligation $ 69,894 $ 75,091 $ 119,409 $ (5,197 ) -6.9 % $ (49,515 ) -41.5 %to repurchase) Quarter Ended Linked Quarter Year over YearACL LHFI (1) 12/31/2021 9/30/2021 12/31/2020 $ Change % Change $ Change % ChangeBeginning $ 104,073 $ 104,032 $ 122,010 $ 41 0.0 % $ (17,937 ) -14.7 %BalanceCECL adoptionadjustments:LHFI - - - - n/m - n/m

Acquired loan - - - - n/m - n/m transfersProvision for (4,515 ) (2,492 ) (4,413 ) (2,023 ) -81.2 % (102 ) -2.3 %credit losses,LHFICharge-offs (2,616 ) (1,586 ) (2,797 ) (1,030 ) -64.9 % 181 6.5 %

Recoveries 2,515 4,119 2,506 (1,604 ) -38.9 % 9 0.4 %

Net (101 ) 2,533 (291 ) (2,634 ) n/m 190 -65.3 %(charge-offs)recoveriesEnding Balance $ 99,457 $ 104,073 $ 117,306 $ (4,616 ) -4.4 % $ (17,849 ) -15.2 %

NET(CHARGE-OFFS)RECOVERIES (1)Alabama $ 747 $ 247 $ (1,011 ) $ 500 n/m $ 1,758 n/m

Florida (32 ) 356 66 (388 ) n/m (98 ) n/m

Mississippi (2) (683 ) 1,436 332 (2,119 ) n/m (1,015 ) n/m

Tennessee (3) (130 ) (8 ) 303 (122 ) n/m (433 ) n/m

Texas (3 ) 502 19 (505 ) n/m (22 ) n/m

Total net $ (101 ) $ 2,533 $ (291 ) $ (2,634 ) n/m $ 190 65.3 %(charge-offs)recoveries (1) Excludes PPP loans.(2) Mississippi includes Central and Southern Mississippi Regions.(3) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions. n/m - percentage changes greater than +/- 100% are considered not meaningful See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONDecember 31, 2021($ in thousands)(unaudited)Quarter EndedYear EndedAVERAGE BALANCES12/31/20219/30/20216/30/20213/31/202112/31/202012/31/202112/31/2020Securities AFS-taxable$

3,156,740

$

2,686,765

$

2,339,662

$

2,098,089

$

1,902,162

$

2,573,533

$

1,776,555

Securities AFS-nontaxable5,143

5,159

5,174

5,190

5,206

5,166

10,737

Securities HTM-taxable364,038

401,685

441,688

489,260

550,563

423,763

626,983

Securities HTM-nontaxable7,618

8,641

10,958

24,070

24,752

12,765

25,366

Total securities3,533,539

3,102,250

2,797,482

2,616,609

2,482,683

3,015,227

2,439,641

PPP loans42,749

122,176

648,222

598,139

875,098

350,668

646,680

Loans (includes loans held for sale)10,487,679

10,389,826

10,315,927

10,316,319

10,231,671

10,377,941

9,996,192

Fed funds sold and reverse repurchases58

69

55

136

303

79

221

Other earning assets1,839,498

2,038,515

1,750,385

1,667,906

860,540

1,825,134

657,096

Total earning assets15,903,523

15,652,836

15,512,071

15,199,109

14,450,295

15,569,049

13,739,830

ACL LHFI(104,148

)

(104,857

)

(112,346

)

(119,557

)

(124,088

)

(110,170

)

(108,567

)

Other assets1,570,501

1,602,611

1,622,388

1,601,250

1,620,694

1,599,114

1,592,393

Total assets$

17,369,876

$

17,150,590

$

17,022,113

$

16,680,802

$

15,946,901

$

17,057,993

$

15,223,656

Interest-bearing demand deposits$

4,353,599

$

4,224,717

$

4,056,910

$

3,743,651

$

3,649,590

$

4,096,746

$

3,584,249

Savings deposits4,585,624

4,617,683

4,627,180

4,659,037

4,350,783

4,622,167

4,149,860

Time deposits1,220,083

1,258,829

1,301,896

1,371,830

1,436,677

1,287,663

1,534,673

Total interest-bearing deposits10,159,306

10,101,229

9,985,986

9,774,518

9,437,050

10,006,576

9,268,782

Fed funds purchased and repurchases201,856

147,635

174,620

166,909

170,474

172,782

151,805

Other borrowings94,328

109,735

132,199

166,926

173,525

125,554

133,602

Subordinated notes123,007

122,951

122,897

122,875

42,828

122,933

10,766

Junior subordinated debt securities61,856

61,856

61,856

61,856

61,856

61,856

61,856

Total interest-bearing liabilities10,640,353

10,543,406

10,477,558

10,293,084

9,885,733

10,489,701

9,626,811

Noninterest-bearing deposits4,679,951

4,566,924

4,512,268

4,363,559

4,100,849

4,531,642

3,646,860

Other liabilities291,449

257,956

251,582

264,808

235,284

266,499

268,398

Total liabilities15,611,753

15,368,286

15,241,408

14,921,451

14,221,866

15,287,842

13,542,069

Shareholders' equity1,758,123

1,782,304

1,780,705

1,759,351

1,725,035

1,770,151

1,681,587

Total liabilities and equity$

17,369,876

$

17,150,590

$

17,022,113

$

16,680,802

$

15,946,901

$

17,057,993

$

15,223,656

See Notes to Consolidated FinancialsTRUSTMARK CORPORATION ANDSUBSIDIARIESCONSOLIDATED FINANCIALINFORMATIONDecember 31, 2021($ in thousands)(unaudited) Quarter Ended Year EndedAVERAGE BALANCES 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 12/31/2021 12/31/2020Securities AFS-taxable $ 3,156,740 $ 2,686,765 $ 2,339,662 $ 2,098,089 $ 1,902,162 $ 2,573,533 $ 1,776,555

Securities AFS-nontaxable 5,143 5,159 5,174 5,190 5,206 5,166 10,737

Securities HTM-taxable 364,038 401,685 441,688 489,260 550,563 423,763 626,983

Securities HTM-nontaxable 7,618 8,641 10,958 24,070 24,752 12,765 25,366

Total securities 3,533,539 3,102,250 2,797,482 2,616,609 2,482,683 3,015,227 2,439,641

PPP loans 42,749 122,176 648,222 598,139 875,098 350,668 646,680

Loans (includes loans held for 10,487,679 10,389,826 10,315,927 10,316,319 10,231,671 10,377,941 9,996,192 sale)Fed funds sold and reverse 58 69 55 136 303 79 221 repurchasesOther earning assets 1,839,498 2,038,515 1,750,385 1,667,906 860,540 1,825,134 657,096

Total earning assets 15,903,523 15,652,836 15,512,071 15,199,109 14,450,295 15,569,049 13,739,830

ACL LHFI (104,148 ) (104,857 ) (112,346 ) (119,557 ) (124,088 ) (110,170 ) (108,567 )

Other assets 1,570,501 1,602,611 1,622,388 1,601,250 1,620,694 1,599,114 1,592,393

Total assets $ 17,369,876 $ 17,150,590 $ 17,022,113 $ 16,680,802 $ 15,946,901 $ 17,057,993 $ 15,223,656

Interest-bearing demand $ 4,353,599 $ 4,224,717 $ 4,056,910 $ 3,743,651 $ 3,649,590 $ 4,096,746 $ 3,584,249 depositsSavings deposits 4,585,624 4,617,683 4,627,180 4,659,037 4,350,783 4,622,167 4,149,860

Time deposits 1,220,083 1,258,829 1,301,896 1,371,830 1,436,677 1,287,663 1,534,673

Total interest-bearing 10,159,306 10,101,229 9,985,986 9,774,518 9,437,050 10,006,576 9,268,782 depositsFed funds purchased and 201,856 147,635 174,620 166,909 170,474 172,782 151,805 repurchasesOther borrowings 94,328 109,735 132,199 166,926 173,525 125,554 133,602

Subordinated notes 123,007 122,951 122,897 122,875 42,828 122,933 10,766

Junior subordinated debt 61,856 61,856 61,856 61,856 61,856 61,856 61,856 securitiesTotal interest-bearing 10,640,353 10,543,406 10,477,558 10,293,084 9,885,733 10,489,701 9,626,811 liabilitiesNoninterest-bearing deposits 4,679,951 4,566,924 4,512,268 4,363,559 4,100,849 4,531,642 3,646,860

Other liabilities 291,449 257,956 251,582 264,808 235,284 266,499 268,398

Total liabilities 15,611,753 15,368,286 15,241,408 14,921,451 14,221,866 15,287,842 13,542,069

Shareholders' equity 1,758,123 1,782,304 1,780,705 1,759,351 1,725,035 1,770,151 1,681,587

Total liabilities and equity $ 17,369,876 $ 17,150,590 $ 17,022,113 $ 16,680,802 $ 15,946,901 $ 17,057,993 $ 15,223,656

See Notes to ConsolidatedFinancials TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONDecember 31, 2021($ in thousands)(unaudited)PERIOD END BALANCES12/31/20219/30/20216/30/20213/31/202112/31/2020Cash and due from banks$

2,266,829

$

2,175,058

$

2,267,224

$

1,774,541

$

1,952,504

Fed funds sold and reverse repurchases-

-

-

-

50

Securities available for sale3,238,877

3,057,605

2,548,739

2,337,676

1,991,815

Securities held to maturity342,537

394,905

433,012

493,738

538,072

PPP loans33,336

46,486

166,119

679,725

610,134

LHFS275,706

335,339

332,132

412,999

446,951

LHFI10,247,829

10,174,899

10,152,869

9,983,704

9,824,524

ACL LHFI(99,457

)

(104,073

)

(104,032

)

(109,191

)

(117,306

)

Net LHFI10,148,372

10,070,826

10,048,837

9,874,513

9,707,218

Premises and equipment, net205,644

201,937

200,970

199,098

194,278

Mortgage servicing rights87,687

84,101

80,764

83,035

66,464

Goodwill384,237

384,237

384,237

384,237

385,270

Identifiable intangible assets5,074

5,621

6,170

6,724

7,390

Other real estate4,557

6,213

9,439

10,651

11,651

Operating lease right-of-use assets34,603

34,689

33,201

33,704

30,901

Other assets568,177

567,627

587,288

587,672

609,142

Total assets$

17,595,636

$

17,364,644

$

17,098,132

$

16,878,313

$

16,551,840

Deposits:Noninterest-bearing$

4,771,065

$

4,987,885

$

4,446,991

$

4,705,991

$

4,349,010

Interest-bearing10,316,095

9,934,954

10,185,093

9,677,449

9,699,754

Total deposits15,087,160

14,922,839

14,632,084

14,383,440

14,048,764

Fed funds purchased and repurchases238,577

146,417

157,176

160,991

164,519

Other borrowings91,025

94,889

117,223

145,994

168,252

Subordinated notes123,042

122,987

122,932

122,877

122,921

Junior subordinated debt securities61,856

61,856

61,856

61,856

61,856

ACL on off-balance sheet credit exposures35,623

32,684

33,733

29,205

38,572

Operating lease liabilities36,468

36,531

34,959

35,389

32,290

Other liabilities180,574

177,494

158,860

178,856

173,549

Total liabilities15,854,325

15,595,697

15,318,823

15,118,608

14,810,723

Common stock12,845

13,014

13,079

13,209

13,215

Capital surplus175,913

201,837

210,420

229,892

233,120

Retained earnings1,585,113

1,573,176

1,566,451

1,533,110

1,495,833

Accumulated other comprehensive income (loss), net of tax(32,560

)

(19,080

)

(10,641

)

(16,506

)

(1,051

)

Total shareholders' equity1,741,311

1,768,947

1,779,309

1,759,705

1,741,117

Total liabilities and equity$

17,595,636

$

17,364,644

$

17,098,132

$

16,878,313

$

16,551,840

See Notes to Consolidated FinancialsTRUSTMARKCORPORATION ANDSUBSIDIARIESCONSOLIDATEDFINANCIALINFORMATIONDecember 31, 2021($ in thousands)(unaudited) PERIOD END BALANCES 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020Cash and due from $ 2,266,829 $ 2,175,058 $ 2,267,224 $ 1,774,541 $ 1,952,504 banksFed funds sold and - - - - 50 reverse repurchasesSecurities 3,238,877 3,057,605 2,548,739 2,337,676 1,991,815 available for saleSecurities held to 342,537 394,905 433,012 493,738 538,072 maturityPPP loans 33,336 46,486 166,119 679,725 610,134

LHFS 275,706 335,339 332,132 412,999 446,951

LHFI 10,247,829 10,174,899 10,152,869 9,983,704 9,824,524

ACL LHFI (99,457 ) (104,073 ) (104,032 ) (109,191 ) (117,306 )

Net LHFI 10,148,372 10,070,826 10,048,837 9,874,513 9,707,218

Premises and 205,644 201,937 200,970 199,098 194,278 equipment, netMortgage servicing 87,687 84,101 80,764 83,035 66,464 rightsGoodwill 384,237 384,237 384,237 384,237 385,270

Identifiable 5,074 5,621 6,170 6,724 7,390 intangible assetsOther real estate 4,557 6,213 9,439 10,651 11,651

Operating lease 34,603 34,689 33,201 33,704 30,901 right-of-use assetsOther assets 568,177 567,627 587,288 587,672 609,142

Total assets $ 17,595,636 $ 17,364,644 $ 17,098,132 $ 16,878,313 $ 16,551,840

Deposits:Noninterest-bearing $ 4,771,065 $ 4,987,885 $ 4,446,991 $ 4,705,991 $ 4,349,010

Interest-bearing 10,316,095 9,934,954 10,185,093 9,677,449 9,699,754

Total deposits 15,087,160 14,922,839 14,632,084 14,383,440 14,048,764

Fed funds purchased 238,577 146,417 157,176 160,991 164,519 and repurchasesOther borrowings 91,025 94,889 117,223 145,994 168,252

Subordinated notes 123,042 122,987 122,932 122,877 122,921

Junior subordinated 61,856 61,856 61,856 61,856 61,856 debt securitiesACL on off-balance 35,623 32,684 33,733 29,205 38,572 sheet creditexposuresOperating lease 36,468 36,531 34,959 35,389 32,290 liabilitiesOther liabilities 180,574 177,494 158,860 178,856 173,549

Total liabilities 15,854,325 15,595,697 15,318,823 15,118,608 14,810,723

Common stock 12,845 13,014 13,079 13,209 13,215

Capital surplus 175,913 201,837 210,420 229,892 233,120

Retained earnings 1,585,113 1,573,176 1,566,451 1,533,110 1,495,833

Accumulated othercomprehensive (32,560 ) (19,080 ) (10,641 ) (16,506 ) (1,051 )income (loss), netof taxTotal shareholders' 1,741,311 1,768,947 1,779,309 1,759,705 1,741,117 equityTotal liabilities $ 17,595,636 $ 17,364,644 $ 17,098,132 $ 16,878,313 $ 16,551,840 and equity See Notes toConsolidatedFinancials TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONDecember 31, 2021($ in thousands except per share data)(unaudited)Quarter EndedYear EndedINCOME STATEMENTS12/31/20219/30/20216/30/20213/31/202112/31/202012/31/202112/31/2020Interest and fees on LHFS & LHFI-FTE$

94,137

$

94,101

$

93,698

$

93,394

$

96,453

$

375,330

$

402,539

Interest and fees on PPP loans397

1,533

25,555

9,241

14,870

36,726

26,643

Interest on securities-taxable10,796

9,973

8,991

8,938

9,998

38,698

48,250

Interest on securities-tax exempt-FTE123

132

149

290

293

694

1,366

Interest on fed funds sold and reverse repurchases-

-

-

-

-

-

1

Other interest income826

949

489

503

249

2,767

1,559

Total interest income-FTE106,279

106,688

128,882

112,366

121,863

454,215

480,358

Interest on deposits3,401

3,691

4,630

5,223

6,363

16,945

37,487

Interest on fed funds purchased and repurchases66

51

59

56

56

232

755

Other interest expense1,580

1,733

1,813

1,857

1,127

6,983

3,556

Total interest expense5,047

5,475

6,502

7,136

7,546

24,160

41,798

Net interest income-FTE101,232

101,213

122,380

105,230

114,317

430,055

438,560

Provision for credit losses, LHFI(4,515

)

(2,492

)

(3,991

)

(10,501

)

(4,413

)

(21,499

)

36,113

Provision for credit losses, off-balance sheet credit exposures (1)2,939

(1,049

)

4,528

(9,367

)

(1,087

)

(2,949

)

8,934

Net interest income after provision-FTE102,808

104,754

121,843

125,098

119,817

454,503

393,513

Service charges on deposit accounts9,366

8,911

7,613

7,356

8,283

33,246

32,289

Bank card and other fees8,340

8,549

8,301

9,472

9,107

34,662

31,022

Mortgage banking, net11,609

14,004

17,333

20,804

28,155

63,750

125,822

Insurance commissions11,716

12,133

12,217

12,445

10,196

48,511

45,176

Wealth management8,757

9,071

8,946

8,416

7,838

35,190

31,625

Other, net979

1,481

2,001

2,090

2,538

6,551

8,659

Total noninterest income50,767

54,149

56,411

60,583

66,117

221,910

274,593

Salaries and employee benefits68,258

74,623

70,115

71,162

69,660

284,158

272,257

Services and fees22,904

22,306

21,769

22,484

22,327

89,463

83,816

Net occupancy-premises6,816

6,854

6,578

6,795

6,616

27,043

26,489

Equipment expense6,585

5,941

5,567

6,244

6,213

24,337

23,277

Other real estate expense, net336

1,357

1,511

324

(812

)

3,528

1,956

Other expense14,570

18,519

13,139

14,539

15,890

60,767

58,506

Total noninterest expense119,469

129,600

118,679

121,548

119,894

489,296

466,301

Income before income taxes and tax eq adj34,106

29,303

59,575

64,133

66,040

187,117

201,805

Tax equivalent adjustment2,906

2,947

2,957

2,894

2,939

11,704

12,023

Income before income taxes31,200

26,356

56,618

61,239

63,101

175,413

189,782

Income taxes4,978

5,156

8,637

9,277

11,884

28,048

29,757

Net income$

26,222

$

21,200

$

47,981

$

51,962

$

51,217

$

147,365

$

160,025

Per share dataEarnings per share - basic$

0.42

$

0.34

$

0.76

$

0.82

$

0.81

$

2.35

$

2.52

Earnings per share - diluted$

0.42

$

0.34

$

0.76

$

0.82

$

0.81

$

2.34

$

2.51

Dividends per share$

0.23

$

0.23

$

0.23

$

0.23

$

0.23

$

0.92

$

0.92

Weighted average shares outstandingBasic62,037,884

62,521,684

63,214,593

63,395,911

63,424,219

62,788,055

63,504,516

Diluted62,264,983

62,730,157

63,409,683

63,562,503

63,616,767

62,973,464

63,645,599

Period end shares outstanding61,648,679

62,461,832

62,773,226

63,394,522

63,424,526

61,648,679

63,424,526

(1) During the second quarter of 2021, Trustmark reclassified its credit loss expense related to off-balance sheet credit exposures from noninterest expense to provision for credit losses, off-balance sheet credit exposures. Prior periods have been reclassified accordingly.See Notes to Consolidated FinancialsTRUSTMARKCORPORATION ANDSUBSIDIARIESCONSOLIDATEDFINANCIALINFORMATIONDecember 31, 2021($ in thousandsexcept per sharedata)(unaudited) Quarter Ended Year EndedINCOME STATEMENTS 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 12/31/2021 12/31/2020Interest and fees $ 94,137 $ 94,101 $ 93,698 $ 93,394 $ 96,453 $ 375,330 $ 402,539on LHFS & LHFI-FTEInterest and fees 397 1,533 25,555 9,241 14,870 36,726 26,643on PPP loansInterest on 10,796 9,973 8,991 8,938 9,998 38,698 48,250securities-taxableInterest on 123 132 149 290 293 694 1,366securities-taxexempt-FTEInterest on fedfunds sold and - - - - - - 1reverserepurchasesOther interest 826 949 489 503 249 2,767 1,559incomeTotal interest 106,279 106,688 128,882 112,366 121,863 454,215 480,358income-FTEInterest on 3,401 3,691 4,630 5,223 6,363 16,945 37,487depositsInterest on fed 66 51 59 56 56 232 755funds purchasedand repurchasesOther interest 1,580 1,733 1,813 1,857 1,127 6,983 3,556expenseTotal interest 5,047 5,475 6,502 7,136 7,546 24,160 41,798expenseNet interest 101,232 101,213 122,380 105,230 114,317 430,055 438,560income-FTEProvision for (4,515 ) (2,492 ) (3,991 ) (10,501 ) (4,413 ) (21,499 ) 36,113credit losses,LHFIProvision forcredit losses, 2,939 (1,049 ) 4,528 (9,367 ) (1,087 ) (2,949 ) 8,934off-balance sheetcredit exposures(1)Net interest 102,808 104,754 121,843 125,098 119,817 454,503 393,513income afterprovision-FTEService charges on 9,366 8,911 7,613 7,356 8,283 33,246 32,289deposit accountsBank card and 8,340 8,549 8,301 9,472 9,107 34,662 31,022other feesMortgage banking, 11,609 14,004 17,333 20,804 28,155 63,750 125,822netInsurance 11,716 12,133 12,217 12,445 10,196 48,511 45,176commissionsWealth management 8,757 9,071 8,946 8,416 7,838 35,190 31,625

Other, net 979 1,481 2,001 2,090 2,538 6,551 8,659

Total noninterest 50,767 54,149 56,411 60,583 66,117 221,910 274,593incomeSalaries and 68,258 74,623 70,115 71,162 69,660 284,158 272,257employee benefitsServices and fees 22,904 22,306 21,769 22,484 22,327 89,463 83,816

Net 6,816 6,854 6,578 6,795 6,616 27,043 26,489occupancy-premisesEquipment expense 6,585 5,941 5,567 6,244 6,213 24,337 23,277

Other real estate 336 1,357 1,511 324 (812 ) 3,528 1,956expense, netOther expense 14,570 18,519 13,139 14,539 15,890 60,767 58,506

Total noninterest 119,469 129,600 118,679 121,548 119,894 489,296 466,301expenseIncome before 34,106 29,303 59,575 64,133 66,040 187,117 201,805income taxes andtax eq adjTax equivalent 2,906 2,947 2,957 2,894 2,939 11,704 12,023adjustmentIncome before 31,200 26,356 56,618 61,239 63,101 175,413 189,782income taxesIncome taxes 4,978 5,156 8,637 9,277 11,884 28,048 29,757

Net income $ 26,222 $ 21,200 $ 47,981 $ 51,962 $ 51,217 $ 147,365 $ 160,025

Per share dataEarnings per share $ 0.42 $ 0.34 $ 0.76 $ 0.82 $ 0.81 $ 2.35 $ 2.52- basic Earnings per share $ 0.42 $ 0.34 $ 0.76 $ 0.82 $ 0.81 $ 2.34 $ 2.51- diluted Dividends per $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.23 $ 0.92 $ 0.92share Weighted averageshares outstandingBasic 62,037,884 62,521,684 63,214,593 63,395,911 63,424,219 62,788,055 63,504,516

Diluted 62,264,983 62,730,157 63,409,683 63,562,503 63,616,767 62,973,464 63,645,599

Period end shares 61,648,679 62,461,832 62,773,226 63,394,522 63,424,526 61,648,679 63,424,526outstanding (1) During the second quarter of 2021, Trustmark reclassified its credit lossexpense related to off-balance sheet credit exposures from noninterest expenseto provision for credit losses, off-balance sheet credit exposures. Priorperiods have been reclassified accordingly. See Notes to Consolidated FinancialsTRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONDecember 31, 2021($ in thousands)(unaudited)Quarter EndedNONPERFORMING ASSETS (1)12/31/20219/30/20216/30/20213/31/202112/31/2020Nonaccrual LHFIAlabama$

8,182

$

9,223

$

8,952

$

9,161

$

9,221

Florida313

381

467

607

572

Mississippi (2)21,636

22,898

23,422

35,534

35,015

Tennessee (3)10,501

10,356

10,751

12,451

12,572

Texas22,066

23,382

7,856

5,761

5,748

Total nonaccrual LHFI62,698

66,240

51,448

63,514

63,128

Other real estateAlabama-

613

2,830

3,085

3,271

Florida-

-

-

-

-

Mississippi (2)4,557

5,600

6,550

7,566

8,330

Tennessee (3)-

-

59

-

50

Texas-

-

-

-

-

Total other real estate4,557

6,213

9,439

10,651

11,651

Total nonperforming assets$

67,255

$

72,453

$

60,887

$

74,165

$

74,779

LOANS PAST DUE OVER 90 DAYS (1)LHFI$

2,114

$

625

$

423

$

2,593

$

1,576

LHFS-Guaranteed GNMA serviced loans(no obligation to repurchase)$

69,894

$

75,091

$

81,538

$

109,566

$

119,409

Quarter EndedYear EndedACL LHFI (1)12/31/20219/30/20216/30/20213/31/202112/31/202012/31/202112/31/2020Beginning Balance$

104,073

$

104,032

$

109,191

$

117,306

$

122,010

$

117,306

$

84,277

CECL adoption adjustments:LHFI-

-

-

-

-

-

(3,039

)

Acquired loan transfers-

-

-

-

-

-

1,822

Provision for credit losses, LHFI(4,515

)

(2,492

)

(3,991

)

(10,501

)

(4,413

)

(21,499

)

36,113

Charge-offs(2,616

)

(1,586

)

(4,828

)

(1,245

)

(2,797

)

(10,275

)

(11,475

)

Recoveries2,515

4,119

3,660

3,631

2,506

13,925

9,608

Net (charge-offs) recoveries(101

)

2,533

(1,168

)

2,386

(291

)

3,650

(1,867

)

Ending Balance$

99,457

$

104,073

$

104,032

$

109,191

$

117,306

$

99,457

$

117,306

NET (CHARGE-OFFS) RECOVERIES (1)Alabama$

747

$

247

$

203

$

102

$

(1,011

)

$

1,299

$

(1,448

)

Florida(32

)

356

167

30

66

521

390

Mississippi (2)(683

)

1,436

(3,071

)

2,207

332

(111

)

814

Tennessee (3)(130

)

(8

)

1,031

47

303

940

(1,775

)

Texas(3

)

502

502

-

19

1,001

152

Total net (charge-offs) recoveries$

(101

)

$

2,533

$

(1,168

)

$

2,386

$

(291

)

$

3,650

$

(1,867

)

(1) Excludes PPP loans.(2) Mississippi includes Central and Southern Mississippi Regions.(3) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.See Notes to Consolidated FinancialsTRUSTMARKCORPORATION ANDSUBSIDIARIESCONSOLIDATEDFINANCIALINFORMATIONDecember 31,2021($ inthousands)(unaudited) Quarter EndedNONPERFORMING 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020ASSETS (1)Nonaccrual LHFIAlabama $ 8,182 $ 9,223 $ 8,952 $ 9,161 $ 9,221

Florida 313 381 467 607 572

Mississippi (2) 21,636 22,898 23,422 35,534 35,015

Tennessee (3) 10,501 10,356 10,751 12,451 12,572

Texas 22,066 23,382 7,856 5,761 5,748

Total 62,698 66,240 51,448 63,514 63,128 nonaccrual LHFIOther realestateAlabama - 613 2,830 3,085 3,271

Florida - - - - -

Mississippi (2) 4,557 5,600 6,550 7,566 8,330

Tennessee (3) - - 59 - 50

Texas - - - - -

Total other 4,557 6,213 9,439 10,651 11,651 real estateTotal $ 67,255 $ 72,453 $ 60,887 $ 74,165 $ 74,779 nonperformingassets LOANS PAST DUEOVER 90 DAYS(1)LHFI $ 2,114 $ 625 $ 423 $ 2,593 $ 1,576

LHFS-GuaranteedGNMA servicedloans(no obligation $ 69,894 $ 75,091 $ 81,538 $ 109,566 $ 119,409 to repurchase) Quarter Ended Year EndedACL LHFI (1) 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 12/31/2021 12/31/2020Beginning $ 104,073 $ 104,032 $ 109,191 $ 117,306 $ 122,010 $ 117,306 $ 84,277 BalanceCECL adoptionadjustments:LHFI - - - - - - (3,039 )

Acquired loan - - - - - - 1,822 transfersProvision for (4,515 ) (2,492 ) (3,991 ) (10,501 ) (4,413 ) (21,499 ) 36,113 credit losses,LHFICharge-offs (2,616 ) (1,586 ) (4,828 ) (1,245 ) (2,797 ) (10,275 ) (11,475 )

Recoveries 2,515 4,119 3,660 3,631 2,506 13,925 9,608

Net (101 ) 2,533 (1,168 ) 2,386 (291 ) 3,650 (1,867 )(charge-offs)recoveriesEnding Balance $ 99,457 $ 104,073 $ 104,032 $ 109,191 $ 117,306 $ 99,457 $ 117,306

NET(CHARGE-OFFS)RECOVERIES (1)Alabama $ 747 $ 247 $ 203 $ 102 $ (1,011 ) $ 1,299 $ (1,448 )

Florida (32 ) 356 167 30 66 521 390

Mississippi (2) (683 ) 1,436 (3,071 ) 2,207 332 (111 ) 814

Tennessee (3) (130 ) (8 ) 1,031 47 303 940 (1,775 )

Texas (3 ) 502 502 - 19 1,001 152

Total net $ (101 ) $ 2,533 $ (1,168 ) $ 2,386 $ (291 ) $ 3,650 $ (1,867 )(charge-offs)recoveries (1) Excludes PPP loans.(2) Mississippi includes Central and Southern Mississippi Regions.(3) Tennessee includes Memphis, Tennessee and Northern MississippiRegions. See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIESCONSOLIDATED FINANCIAL INFORMATIONDecember 31, 2021(unaudited)Quarter EndedYear EndedFINANCIAL RATIOS AND OTHER DATA12/31/20219/30/20216/30/20213/31/202112/31/202012/31/202112/31/2020Return on average equity5.92

%

4.72

%

10.81

%

11.98

%

11.81

%

8.32

%

9.52

%

Return on average tangible equity7.72

%

6.16

%

13.96

%

15.56

%

15.47

%

10.81

%

12.58

%

Return on average assets0.60

%

0.49

%

1.13

%

1.26

%

1.28

%

0.86

%

1.05

%

Interest margin - Yield - FTE2.65

%

2.70

%

3.33

%

3.00

%

3.35

%

2.92

%

3.50

%

Interest margin - Cost0.13

%

0.14

%

0.17

%

0.19

%

0.21

%

0.16

%

0.30

%

Net interest margin - FTE2.53

%

2.57

%

3.16

%

2.81

%

3.15

%

2.76

%

3.19

%

Efficiency ratio (1)76.52

%

74.10

%

64.31

%

71.84

%

65.59

%

71.41

%

63.35

%

Full-time equivalent employees2,692

2,680

2,772

2,793

2,797

CREDIT QUALITY RATIOS (2)Net (recoveries) charge-offs / average loans0.00

%

-0.10

%

0.05

%

-0.09

%

0.01

%

-0.04

%

0.02

%

Provision for credit losses, LHFI / average loans-0.17

%

-0.10

%

-0.16

%

-0.41

%

-0.17

%

-0.21

%

0.36

%

Nonaccrual LHFI / (LHFI + LHFS)0.60

%

0.63

%

0.49

%

0.61

%

0.61

%

Nonperforming assets / (LHFI + LHFS)0.64

%

0.69

%

0.58

%

0.71

%

0.73

%

Nonperforming assets / (LHFI + LHFS + other real estate)0.64

%

0.69

%

0.58

%

0.71

%

0.73

%

ACL LHFI / LHFI0.97

%

1.02

%

1.02

%

1.09

%

1.19

%

ACL LHFI-commercial / commercial LHFI1.00

%

1.05

%

1.04

%

1.13

%

1.20

%

ACL LHFI-consumer / consumer and home mortgage LHFI0.87

%

0.91

%

0.98

%

0.95

%

1.16

%

ACL LHFI / nonaccrual LHFI158.63

%

157.11

%

202.21

%

171.92

%

185.82

%

ACL LHFI / nonaccrual LHFI (excl individually evaluated loans)500.85

%

520.77

%

537.35

%

437.08

%

572.69

%

CAPITAL RATIOSTotal equity / total assets9.90

%

10.19

%

10.41

%

10.43

%

10.52

%

Tangible equity / tangible assets7.86

%

8.12

%

8.31

%

8.30

%

8.34

%

Tangible equity / risk-weighted assets10.71

%

11.19

%

11.33

%

11.23

%

11.22

%

Tier 1 leverage ratio8.73

%

8.92

%

9.00

%

9.11

%

9.33

%

Common equity tier 1 capital ratio11.29

%

11.68

%

11.76

%

11.71

%

11.62

%

Tier 1 risk-based capital ratio11.77

%

12.17

%

12.25

%

12.20

%

12.11

%

Total risk-based capital ratio13.55

%

14.01

%

14.10

%

14.07

%

14.12

%

STOCK PERFORMANCEMarket value-Close$

32.46

$

32.22

$

30.80

$

33.66

$

27.31

Book value$

28.25

$

28.32

$

28.35

$

27.76

$

27.45

Tangible book value$

21.93

$

22.08

$

22.13

$

21.59

$

21.26

(1) See Note 10 - Non-GAAP Financial Measures in the Notes to Consolidated Financials for Trustmark's efficiency ratio calculation.(2) Excludes PPP loans.See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2021 ($ in thousands) (unaudited)

Note 1 - Regulatory Matters

On October 22, 2021, Trustmark Corporation's subsidiary, Trustmark National Bank ("TNB"), issued a press release announcing that it entered into a consent order with the Office of the Comptroller of the Currency ("OCC") and a separate consent order jointly with the U.S. Department of Justice ("DOJ") and the Consumer Financial Protection Bureau ("CFPB"), to resolve allegations that TNB previously violated the Fair Housing Act (the "FHA"), the Equal Credit Opportunity Act (the "ECOA") and the Consumer Financial Protection Act within the Memphis metropolitan statistical area (the "Memphis MSA").

Under the DOJ and CFPB's joint consent order, TNB paid a civil money penalty totaling $5.0 million, of which $4.0 million satisfied the OCC's civil money penalty as set forth in the OCC's consent order; the remaining $1.0 million was paid to the CFPB. The joint consent order also requires TNB, among other things, to implement a mutually agreed-upon Fair Lending Plan, invest $3.85 million over five years in a loan subsidy fund to increase credit opportunities to residents of majority-Black and Hispanic neighborhoods, and devote a minimum of $400 thousand over five years toward community development partnership contributions and $200 thousand per year over five years toward advertising, community outreach, and credit repair and education in TNB's Memphis lending area (defined in the consent order as consisting of Shelby County and Fayette County in Tennessee and DeSoto County in Mississippi). TNB will also open one new mortgage loan production office to serve the credit needs of residents in a majority-Black and Hispanic neighborhood in TNB's Memphis lending area. In addition, TNB will continue to maintain its full-time Community Lending Manager position and its full-time Community Development Manager position, which are both focused on the Memphis MSA.

The joint consent order has been approved by the United States District Court for the Western District of Tennessee.

Note 2 - Paycheck Protection Program

On June 30, 2021, Trustmark announced the sale of substantially all PPP loans originated in 2021 by its wholly owned subsidiary, TNB, to The Loan Source, Inc. (Loan Source), a firm with significant expertise in PPP loans. As a result of this transaction, Loan Source will assume responsibility for the servicing and forgiveness process for the loans it has acquired from Trustmark. This transaction will allow Trustmark to focus on more traditional lending efforts and increase its ability to provide customers with financial services in an improving economic environment.

Trustmark accelerated the recognition of unamortized PPP loan origination fees, net of cost, of approximately $18.6 million, in the second quarter of 2021 due to the sale of approximately $354.2 million in PPP loans. This revenue is substantially the same as Trustmark would expect to recognize upon the maturity or forgiveness of the PPP loans being sold in this transaction, and thus this transaction serves to accelerate revenue anticipated in future periods into the second quarter.

At December 31, 2021, Trustmark had PPP loans outstanding that totaled $33.3 million (net of $500 thousand of deferred fees and costs) under the CARES Act. Due to the amount and nature of the PPP loans, these loans were not included in the LHFI portfolio and are presented separately in the accompanying consolidated balance sheets. The PPP loans are fully guaranteed by the Small Business Administration; therefore, no ACL was estimated for these loans.

Note 3 - Securities Available for Sale and Held to Maturity

The following table is a summary of the estimated fair value of securities available for sale and the amortized cost of securities held to maturity:

TRUSTMARKCORPORATION ANDSUBSIDIARIESCONSOLIDATEDFINANCIALINFORMATIONDecember 31,2021(unaudited) Quarter Ended Year EndedFINANCIAL 12/31/ 12/31/RATIOS AND 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 2021 2020OTHER DATAReturn on 5.92 % 4.72 % 10.81 % 11.98 % 11.81 % 8.32 % 9.52 %average equityReturn on 7.72 % 6.16 % 13.96 % 15.56 % 15.47 % 10.81 % 12.58 %averagetangible equityReturn on 0.60 % 0.49 % 1.13 % 1.26 % 1.28 % 0.86 % 1.05 %average assetsInterest margin 2.65 % 2.70 % 3.33 % 3.00 % 3.35 % 2.92 % 3.50 %- Yield - FTEInterest margin 0.13 % 0.14 % 0.17 % 0.19 % 0.21 % 0.16 % 0.30 %- CostNet interest 2.53 % 2.57 % 3.16 % 2.81 % 3.15 % 2.76 % 3.19 %margin - FTEEfficiency 76.52 % 74.10 % 64.31 % 71.84 % 65.59 % 71.41 % 63.35 %ratio (1)Full-time 2,692 2,680 2,772 2,793 2,797 equivalentemployees CREDIT QUALITYRATIOS (2)Net(recoveries) 0.00 % -0.10 % 0.05 % -0.09 % 0.01 % -0.04 % 0.02 %charge-offs /average loansProvision forcredit losses, -0.17 % -0.10 % -0.16 % -0.41 % -0.17 % -0.21 % 0.36 %LHFI / averageloansNonaccrual LHFI 0.60 % 0.63 % 0.49 % 0.61 % 0.61 %/ (LHFI + LHFS)Nonperforming 0.64 % 0.69 % 0.58 % 0.71 % 0.73 %assets / (LHFI+ LHFS)Nonperformingassets / (LHFI 0.64 % 0.69 % 0.58 % 0.71 % 0.73 %+ LHFS + otherreal estate)ACL LHFI / LHFI 0.97 % 1.02 % 1.02 % 1.09 % 1.19 %

ACLLHFI-commercial 1.00 % 1.05 % 1.04 % 1.13 % 1.20 %/ commercialLHFIACLLHFI-consumer / 0.87 % 0.91 % 0.98 % 0.95 % 1.16 %consumer andhome mortgageLHFIACL LHFI / 158.63 % 157.11 % 202.21 % 171.92 % 185.82 %nonaccrual LHFIACL LHFI /nonaccrual LHFI(excl 500.85 % 520.77 % 537.35 % 437.08 % 572.69 %individuallyevaluatedloans) CAPITAL RATIOSTotal equity / 9.90 % 10.19 % 10.41 % 10.43 % 10.52 %total assetsTangible equity 7.86 % 8.12 % 8.31 % 8.30 % 8.34 %/ tangibleassetsTangible equity 10.71 % 11.19 % 11.33 % 11.23 % 11.22 %/ risk-weightedassetsTier 1 leverage 8.73 % 8.92 % 9.00 % 9.11 % 9.33 %ratioCommon equity 11.29 % 11.68 % 11.76 % 11.71 % 11.62 %tier 1 capitalratioTier 1 11.77 % 12.17 % 12.25 % 12.20 % 12.11 %risk-basedcapital ratioTotal 13.55 % 14.01 % 14.10 % 14.07 % 14.12 %risk-basedcapital ratio STOCKPERFORMANCEMarket $ 32.46 $ 32.22 $ 30.80 $ 33.66 $ 27.31 value-CloseBook value $ 28.25 $ 28.32 $ 28.35 $ 27.76 $ 27.45

Tangible book $ 21.93 $ 22.08 $ 22.13 $ 21.59 $ 21.26 value (1) See Note 10 - Non-GAAP Financial Measures in the Notes to ConsolidatedFinancials for Trustmark's efficiency ratio calculation.(2) Excludes PPP loans. See Notes to Consolidated Financials TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2021 ($ in thousands) (unaudited)

Note 1 - Regulatory Matters

On October 22, 2021, Trustmark Corporation's subsidiary, Trustmark National Bank ("TNB"), issued a press release announcing that it entered into a consent order with the Office of the Comptroller of the Currency ("OCC") and a separate consent order jointly with the U.S. Department of Justice ("DOJ") and the Consumer Financial Protection Bureau ("CFPB"), to resolve allegations that TNB previously violated the Fair Housing Act (the "FHA"), the Equal Credit Opportunity Act (the "ECOA") and the Consumer Financial Protection Act within the Memphis metropolitan statistical area (the "Memphis MSA").

Under the DOJ and CFPB's joint consent order, TNB paid a civil money penalty totaling $5.0 million, of which $4.0 million satisfied the OCC's civil money penalty as set forth in the OCC's consent order; the remaining $1.0 million was paid to the CFPB. The joint consent order also requires TNB, among other things, to implement a mutually agreed-upon Fair Lending Plan, invest $3.85 million over five years in a loan subsidy fund to increase credit opportunities to residents of majority-Black and Hispanic neighborhoods, and devote a minimum of $400 thousand over five years toward community development partnership contributions and $200 thousand per year over five years toward advertising, community outreach, and credit repair and education in TNB's Memphis lending area (defined in the consent order as consisting of Shelby County and Fayette County in Tennessee and DeSoto County in Mississippi). TNB will also open one new mortgage loan production office to serve the credit needs of residents in a majority-Black and Hispanic neighborhood in TNB's Memphis lending area. In addition, TNB will continue to maintain its full-time Community Lending Manager position and its full-time Community Development Manager position, which are both focused on the Memphis MSA.

The joint consent order has been approved by the United States District Court for the Western District of Tennessee.

Note 2 - Paycheck Protection Program

On June 30, 2021, Trustmark announced the sale of substantially all PPP loans originated in 2021 by its wholly owned subsidiary, TNB, to The Loan Source, Inc. (Loan Source), a firm with significant expertise in PPP loans. As a result of this transaction, Loan Source will assume responsibility for the servicing and forgiveness process for the loans it has acquired from Trustmark. This transaction will allow Trustmark to focus on more traditional lending efforts and increase its ability to provide customers with financial services in an improving economic environment.

Trustmark accelerated the recognition of unamortized PPP loan origination fees, net of cost, of approximately $18.6 million, in the second quarter of 2021 due to the sale of approximately $354.2 million in PPP loans. This revenue is substantially the same as Trustmark would expect to recognize upon the maturity or forgiveness of the PPP loans being sold in this transaction, and thus this transaction serves to accelerate revenue anticipated in future periods into the second quarter.

At December 31, 2021, Trustmark had PPP loans outstanding that totaled $33.3 million (net of $500 thousand of deferred fees and costs) under the CARES Act. Due to the amount and nature of the PPP loans, these loans were not included in the LHFI portfolio and are presented separately in the accompanying consolidated balance sheets. The PPP loans are fully guaranteed by the Small Business Administration; therefore, no ACL was estimated for these loans.

Note 3 - Securities Available for Sale and Held to Maturity

The following table is a summary of the estimated fair value of securities available for sale and the amortized cost of securities held to maturity:

12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020

SECURITIESAVAILABLE FOR SALE

U.S. Treasury $ 344,640 $ 278,615 $ 30,025 $ - $ - securities

U.S. Governmentagency 13,727 14,979 16,023 17,349 18,041 obligations

Obligations ofstates and 5,714 5,734 5,807 5,798 5,835 politicalsubdivisions

Mortgage-backed securities

Residentialmortgage pass-throughsecurities

Guaranteed by 39,573 43,860 48,445 52,406 56,862 GNMA

Issued by FNMA 2,218,429 2,187,412 1,983,783 1,749,144 1,441,321 and FHLMC

Otherresidential mortgage-backedsecurities

Issued orguaranteed by 196,690 236,885 283,988 345,869 419,437 FNMA, FHLMC, orGNMA

Commercialmortgage-backed securities

Issued orguaranteed by 420,104 290,120 180,668 167,110 50,319 FNMA, FHLMC, orGNMA

Totalsecurities $ 3,238,877 $ 3,057,605 $ 2,548,739 $ 2,337,676 $ 1,991,815 available forsale



SECURITIES HELD TO MATURITY

Obligations ofstates and $ 7,328 $ 10,683 $ 12,994 $ 26,554 $ 26,584 politicalsubdivisions

Mortgage-backed securities

Residentialmortgage pass-throughsecurities

Guaranteed by 5,005 5,912 6,249 7,268 7,598 GNMA

Issued by FNMA 43,444 48,554 53,406 61,855 67,944 and FHLMC

Otherresidential mortgage-backedsecurities

Issued orguaranteed by 241,934 264,638 291,477 324,360 360,361 FNMA, FHLMC, orGNMA

Commercialmortgage-backed securities

Issued orguaranteed by 44,826 65,118 68,886 73,701 75,585 FNMA, FHLMC, orGNMA

Totalsecurities held $ 342,537 $ 394,905 $ 433,012 $ 493,738 $ 538,072 to maturity

At December 31, 2021, the net unamortized, unrealized loss included in accumulated other comprehensive income (loss) in the accompanying balance sheet for securities held to maturity previously transferred from securities available for sale totaled approximately $6.3 million ($4.7 million, net of tax).

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2021 ($ in thousands) (unaudited)

Note 3 - Securities Available for Sale and Held to Maturity (continued)

Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 99.7% of the portfolio in GSE-backed obligations and other Aaa rated securities as determined by Moody's. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas, Federal Home Loan Bank of Atlanta and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE.

Note 4 - Loan Composition

LHFI consisted of the following during the periods presented:

LHFI BY TYPE 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020

Loans securedby real estate:

Construction,landdevelopment $ 1,308,781 $ 1,286,613 $ 1,360,302 $ 1,342,088 $ 1,309,039 and other landloans

Secured by 1-4family 1,977,993 1,891,292 1,810,396 1,742,782 1,741,132 residentialproperties

Secured bynonfarm, 2,977,084 2,924,953 2,819,662 2,799,195 2,709,026 nonresidentialproperties

Other real 726,043 986,163 1,078,622 1,135,005 1,065,964 estate secured

Commercial andindustrial 1,414,279 1,327,211 1,326,605 1,323,277 1,309,078 loans

Consumer loans 159,472 157,963 153,519 153,267 161,174

State andotherpolitical 1,146,251 1,125,186 1,136,764 1,036,694 1,000,776 subdivisionloans

Other loans 537,926 475,518 466,999 451,396 528,335

LHFI 10,247,829 10,174,899 10,152,869 9,983,704 9,824,524

ACL LHFI (99,457 ) (104,073 ) (104,032 ) (109,191 ) (117,306 )

Net LHFI $ 10,148,372 $ 10,070,826 $ 10,048,837 $ 9,874,513 $ 9,707,218

The following table presents the LHFI composition by region at December 31, 2021 and reflects each region's diversified mix of loans:

December 31, 2021

Mississippi TennesseeLHFI - (Central (Memphis,COMPOSITION BY Total Alabama Florida and TN and Texas REGION Southern Northern Regions) MS Regions)

Loans securedby real estate:

Construction,landdevelopment $ 1,308,781 $ 522,231 $ 49,383 $ 411,607 $ 48,328 $ 277,232 and other landloans

Secured by 1-4family 1,977,993 114,068 41,473 1,738,583 67,601 16,268 residentialproperties

Secured bynonfarm, 2,977,084 890,055 252,656 1,137,039 170,318 527,016 nonresidentialproperties

Other real 726,043 147,430 6,765 280,122 19,887 271,839 estate secured

Commercial andindustrial 1,414,279 279,151 24,099 516,122 349,385 245,522 loans

Consumer loans 159,472 23,850 8,176 101,701 18,129 7,616

State andotherpolitical 1,146,251 98,215 72,146 728,509 34,542 212,839 subdivisionloans

Other loans 537,926 76,612 11,697 355,863 43,004 50,750

Loans $ 10,247,829 $ 2,151,612 $ 466,395 $ 5,269,546 $ 751,194 $ 1,609,082



CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION

Lots $ 62,841 $ 25,827 $ 8,399 $ 17,845 $ 3,210 $ 7,560

Development 139,708 59,615 584 44,593 11,862 23,054

Unimproved 101,591 26,016 12,495 31,167 10,976 20,937 land

1-4 family 292,828 140,905 20,388 78,164 21,123 32,248 construction

Other 711,813 269,868 7,517 239,838 1,157 193,433 construction

Construction,landdevelopment $ 1,308,781 $ 522,231 $ 49,383 $ 411,607 $ 48,328 $ 277,232 and other landloans



TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2021 ($ in thousands) (unaudited)

Note 4 - Loan Composition (continued)

December 31, 2021

Mississippi Tennessee (Central (Memphis, Total Alabama Florida and TN and Texas Southern Northern Regions) MS Regions)



LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION

Non-owner occupied:

Retail $ 351,822 $ 140,054 $ 29,586 $ 97,103 $ 18,777 $ 66,302

Office 208,835 68,067 22,626 66,799 12,786 38,557

Hotel/motel 348,090 176,327 78,408 46,886 32,204 14,265

Mini-storage 153,938 22,414 2,144 100,029 697 28,654

Industrial 346,096 134,279 20,581 86,613 135 104,488

Health care 63,746 32,230 1,101 27,766 364 2,285

Convenience 22,634 8,114 677 3,748 1,167 8,928 stores

Nursing homes/ 197,677 86,868 - 84,540 6,269 20,000 senior living

Other 78,940 17,509 7,239 32,015 11,729 10,448

Total non-owner 1,771,778 685,862 162,362 545,499 84,128 293,927 occupied loans



Owner-occupied:

Office 170,438 37,572 42,913 48,923 13,091 27,939

Churches 83,375 18,657 5,937 47,019 9,172 2,590

Industrial 182,126 21,647 2,678 48,118 18,562 91,121 warehouses

Health care 141,427 11,854 6,809 105,842 2,276 14,646

Convenience 130,948 15,255 13,244 68,673 466 33,310 stores

Retail 65,269 12,420 10,992 20,476 8,818 12,563

Restaurants 54,978 2,877 4,484 30,894 12,735 3,988

Auto 53,710 6,090 256 27,489 19,875 - dealerships

Nursing homes/ 197,232 71,639 - 125,593 - - senior living

Other 125,803 6,182 2,981 68,513 1,195 46,932

Totalowner-occupied 1,205,306 204,193 90,294 591,540 86,190 233,089 loans

Loans securedby nonfarm, $ 2,977,084 $ 890,055 $ 252,656 $ 1,137,039 $ 170,318 $ 527,016 nonresidentialproperties

Note 5 - Subordinated Notes

During the fourth quarter of 2020, Trustmark agreed to issue and sell $125.0 million aggregate principal amount of its 3.625% Fixed-to-Floating Rate Subordinated Notes (the Notes) due December 1, 2030. At December 31, 2021, the carrying amount of the Notes was $123.0 million. The Notes are unsecured obligations and are subordinated in right of payment to all of Trustmark's existing and future senior indebtedness, whether secured or unsecured. The Notes are obligations of Trustmark only and are not obligations of, and are not guaranteed by, any of its subsidiaries, including TNB. From the date of issuance until November 30, 2025, the Notes bear interest at a fixed rate of 3.625% per year, payable semi-annually in arrears on June 1 and December 1 of each year. Beginning December 1, 2025, the Notes will bear interest at a floating rate per year equal to the Benchmark rate, which is the Three-Month Term Secured Overnight Financing Rate (SOFR), plus 338.7 basis points, payable quarterly in arrears on March 1, June 1, September 1 and December 1 of each year. The Notes qualify as Tier 2 capital for Trustmark. The Notes may be redeemed at Trustmark's option under certain circumstances. Trustmark intends to use the net proceeds for general corporate purposes.

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2021 ($ in thousands) (unaudited)

Note 6 - Yields on Earning Assets and Interest-Bearing Liabilities

The following table illustrates the yields on earning assets by category as well as the rates paid on interest-bearing liabilities on a tax equivalent basis:

Quarter Ended Year Ended

12/31/ 9/30/ 6/30/ 3/31/ 12/31/ 12/31/ 12/31/ 2021 2021 2021 2021 2020 2021 2020

Securities - 1.22 % 1.28 % 1.30 % 1.40 % 1.62 % 1.29 % 2.01 %taxable

Securities - 3.82 % 3.79 % 3.70 % 4.02 % 3.89 % 3.87 % 3.78 %nontaxable

Securities - 1.23 % 1.29 % 1.31 % 1.43 % 1.65 % 1.31 % 2.03 %total

PPP loans 3.68 % 4.98 % 15.81 % 6.27 % 6.76 % 10.47 % 4.12 %

Loans - LHFI & 3.56 % 3.59 % 3.64 % 3.67 % 3.75 % 3.62 % 4.03 %LHFS

Loans - total 3.56 % 3.61 % 4.36 % 3.81 % 3.99 % 3.84 % 4.03 %

Fed funds sold &reverse - - - - - - 0.45 %repurchases

Other earning 0.18 % 0.18 % 0.11 % 0.12 % 0.12 % 0.15 % 0.24 %assets

Total earning 2.65 % 2.70 % 3.33 % 3.00 % 3.35 % 2.92 % 3.50 %assets



Interest-bearing 0.13 % 0.14 % 0.19 % 0.22 % 0.27 % 0.17 % 0.40 %deposits

Fed fundspurchased & 0.13 % 0.14 % 0.14 % 0.14 % 0.13 % 0.13 % 0.50 %repurchases

Other borrowings 2.25 % 2.33 % 2.29 % 2.14 % 1.61 % 2.25 % 1.72 %

Totalinterest-bearing 0.19 % 0.21 % 0.25 % 0.28 % 0.30 % 0.23 % 0.43 %liabilities



Net interest 2.53 % 2.57 % 3.16 % 2.81 % 3.15 % 2.76 % 3.19 %margin

Net interestmargin excluding 2.82 % 2.90 % 2.94 % 2.99 % 3.09 % 2.91 % 3.29 %PPP loans andthe FRB balance

Reflected in the table above are yields on earning assets and liabilities, along with the net interest margin which equals reported net interest income-FTE, annualized, as a percent of average earning assets. In addition, the table includes net interest margin excluding PPP loans and the balance held at the Federal Reserve Bank of Atlanta (FRB), which equals reported net interest income-FTE excluding interest income on PPP loans and the FRB balance, annualized, as a percent of average earning assets excluding average PPP loans and the FRB balance.

At December 31, 2021 and September 30, 2021, the average FRB balance totaled $1.787 billion and $1.996 billion, respectively, and is included in other earning assets in the accompanying average consolidated balance sheets.

The net interest margin excluding PPP loans and the FRB balance totaled 2.82% for the fourth quarter of 2021, a decrease of 8 basis points when compared to the third quarter of 2021. Continued low interest rates decreased the yield on the loans held for investment and held for sale portfolio as well as the securities portfolio and were partially offset by lower costs of interest-bearing deposits.

Note 7 - Mortgage Banking

Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that offsets the changes in fair value of mortgage servicing rights (MSR) attributable to interest rates. These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting under generally accepted accounting principles (GAAP). Changes in the fair value of these exchange-traded derivative instruments, including administrative costs, are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of the MSR. The MSR fair value represents the present value of future cash flows, which among other things includes decay and the effect of changes in interest rates. Ineffectiveness of hedging the MSR fair value is measured by comparing the change in value of hedge instruments to the change in the fair value of the MSR asset attributable to changes in interest rates and other market driven changes in valuation inputs and assumptions. The impact of this strategy resulted in a net positive ineffectiveness of $778 thousand during the fourth quarter of 2021.

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2021 ($ in thousands) (unaudited)

Note 7 - Mortgage Banking(continued)

The following table illustrates the components of mortgage banking revenues included in noninterest income in the accompanying income statements:

Quarter Ended Year Ended

12/31/ 9/30/ 6/30/ 3/31/2021 12/31/ 12/31/ 12/31/ 2021 2021 2021 2020 2021 2020

Mortgageservicing $ 6,571 $ 6,406 $ 6,318 $ 6,181 $ 6,227 $ 25,476 $ 23,681 income, net

Change in fairvalue-MSR from (4,745 ) (5,283 ) (5,029 ) (5,103 ) (5,177 ) (20,160 ) (16,588 )runoff

Gain on sales 9,005 12,737 14,778 19,456 28,014 55,976 110,903 of loans, net

Mortgagebanking income 10,831 13,860 16,067 20,534 29,064 61,292 117,996 before hedgeineffectiveness

Change in fairvalue-MSR from 2,221 1,806 (4,465 ) 13,696 951 13,258 (26,147 )market changes

Change in fairvalue of (1,443 ) (1,662 ) 5,731 (13,426 ) (1,860 ) (10,800 ) 33,973 derivatives

Net positive(negative) 778 144 1,266 270 (909 ) 2,458 7,826 hedgeineffectiveness

Mortgage $ 11,609 $ 14,004 $ 17,333 $ 20,804 $ 28,155 $ 63,750 $ 125,822 banking, net

Note 8 - Salaries and Employee Benefit Plans

Early Retirement Program

In June 2021, Trustmark announced a voluntary early retirement program. In general, associates who were eligible to participate had to be at least 60 years of age with five or more years of continuous service. The cost of this program is reflected in a one-time charge of approximately $5.7 million (salaries and benefits of $5.6 million and other miscellaneous expense of $89 thousand; or $0.07 per diluted share net of tax) in Trustmark's third quarter of 2021 earnings. The salary and employee benefits expense savings that resulted from the implementation of the early retirement program was approximately $1.3 million ($0.02 per diluted share net of tax) for 2021 and expected to be $4.3 million ($0.05 per diluted share net of tax) for the year ended 2022.

Note 9 - Other Noninterest Income and Expense

Other noninterest income consisted of the following for the periods presented:

Quarter Ended Year Ended

12/31/ 9/30/ 6/30/ 3/31/ 12/31/ 12/31/ 12/31/ 2021 2021 2021 2021 2020 2021 2020

Partnershipamortizationfor tax $ (2,455 ) $ (2,045 ) $ (1,989 ) $ (1,522 ) $ (1,877 ) $ (8,011 ) $ (5,700 )creditpurposes

Increase inlifeinsurance 1,675 1,663 1,653 1,639 1,708 6,630 6,881 cashsurrendervalue

Othermiscellaneous 1,759 1,863 2,337 1,973 2,707 7,932 7,478 income

Total other, $ 979 $ 1,481 $ 2,001 $ 2,090 $ 2,538 $ 6,551 $ 8,659 net

Trustmark invests in partnerships that provide income tax credits on a Federal and/or State basis (i.e., new market tax credits, low-income housing tax credits and historical tax credits). The income tax credits related to these partnerships are utilized as specifically allowed by income tax law and are recorded as a reduction in income tax expense.

Other noninterest expense consisted of the following for the periods presented:

Quarter Ended Year Ended

12/31/ 9/30/ 6/30/ 3/31/ 12/31/ 12/31/ 12/31/ 2021 2021 2021 2021 2020 2021 2020

Loan expense $ 3,221 $ 4,022 $ 3,738 $ 4,167 $ 4,243 $ 15,148 $ 15,177

Amortization of 548 549 553 666 752 2,316 3,052 intangibles

FDIC assessment 1,475 1,275 1,225 1,540 1,500 5,515 6,090 expense

Regulatory - 5,000 - - - 5,000 - settlement charge

Othermiscellaneous 9,326 7,673 7,623 8,166 9,395 32,788 34,187 expense

Total other $ 14,570 $ 18,519 $ 13,139 $ 14,539 $ 15,890 $ 60,767 $ 58,506 expense

During the third quarter of 2021, other expense included a charge of $5.0 million to resolve allegations by regulatory authorities regarding fair lending matters. See Note 1 - Regulatory Matters for further details.

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2021 ($ in thousands) (unaudited)

Note 10 - Non-GAAP Financial Measures

In addition to capital ratios defined by U.S. generally accepted accounting principles (GAAP) and banking regulators, Trustmark utilizes various tangible common equity measures when evaluating capital utilization and adequacy. Tangible common equity, as defined by Trustmark, represents common equity less goodwill and identifiable intangible assets.

Trustmark believes these measures are important because they reflect the level of capital available to withstand unexpected market conditions. Additionally, presentation of these measures allows readers to compare certain aspects of Trustmark's capitalization to other organizations. These ratios differ from capital measures defined by banking regulators principally in that the numerator excludes shareholders' equity associated with preferred securities, the nature and extent of which varies across organizations. In Management's experience, many stock analysts use tangible common equity measures in conjunction with more traditional bank capital ratios to compare capital adequacy of banking organizations with significant amounts of goodwill or other tangible assets, typically stemming from the use of the purchase accounting method in accounting for mergers and acquisitions.

These calculations are intended to complement the capital ratios defined by GAAP and banking regulators. Because GAAP does not include these capital ratio measures, Trustmark believes there are no comparable GAAP financial measures to these tangible common equity ratios. Despite the importance of these measures to Trustmark, there are no standardized definitions for them and, as a result, Trustmark's calculations may not be comparable with other organizations. Also, there may be limits in the usefulness of these measures to investors. As a result, Trustmark encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure. The following table reconciles Trustmark's calculation of these measures to amounts reported under GAAP.

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2021 ($ in thousands) (unaudited)

Note 10 - Non-GAAP Financial Measures (continued)

Quarter Ended Year Ended

12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 12/31/2021 12/31/2020

TANGIBLE EQUITY

AVERAGE BALANCES

Total shareholders' $ 1,758,123 $ 1,782,304 $ 1,780,705 $ 1,759,351 $ 1,725,035 $ 1,770,151 $ 1,681,587 equity

Less: Goodwill (384,237 ) (384,237 ) (384,237 ) (385,155 ) (385,270 ) (384,463 ) (383,582 )

Identifiable (5,382 ) (5,899 ) (6,442 ) (7,118 ) (7,803 ) (6,205 ) (8,060 )intangible assets

Total average $ 1,368,504 $ 1,392,168 $ 1,390,026 $ 1,367,078 $ 1,331,962 $ 1,379,483 $ 1,289,945 tangible equity



PERIOD END BALANCES

Total shareholders' $ 1,741,311 $ 1,768,947 $ 1,779,309 $ 1,759,705 $ 1,741,117 equity

Less: Goodwill (384,237 ) (384,237 ) (384,237 ) (384,237 ) (385,270 )

Identifiable (5,074 ) (5,621 ) (6,170 ) (6,724 ) (7,390 ) intangible assets

Total tangible (a) $ 1,352,000 $ 1,379,089 $ 1,388,902 $ 1,368,744 $ 1,348,457 equity



TANGIBLE ASSETS

Total assets $ 17,595,636 $ 17,364,644 $ 17,098,132 $ 16,878,313 $ 16,551,840

Less: Goodwill (384,237 ) (384,237 ) (384,237 ) (384,237 ) (385,270 )

Identifiable (5,074 ) (5,621 ) (6,170 ) (6,724 ) (7,390 ) intangible assets

Total tangible (b) $ 17,206,325 $ 16,974,786 $ 16,707,725 $ 16,487,352 $ 16,159,180 assets

Risk-weighted assets (c) $ 12,623,630 $ 12,324,254 $ 12,256,492 $ 12,188,988 $ 12,017,378



NET INCOME ADJUSTED FOR INTANGIBLE AMORTIZATION

Net income $ 26,222 $ 21,200 $ 47,981 $ 51,962 $ 51,217 $ 147,365 $ 160,025

Plus: Intangibleamortization net of 411 412 415 500 564 1,738 2,289 tax

Net income adjusted for $ 26,633 $ 21,612 $ 48,396 $ 52,462 $ 51,781 $ 149,103 $ 162,314 intangible amortization

Period end common (d) 61,648,679 62,461,832 62,773,226 63,394,522 63,424,526 shares outstanding



TANGIBLE COMMON EQUITY MEASUREMENTS

Return on average 7.72 % 6.16 % 13.96 % 15.56 % 15.47 % 10.81 % 12.58 %tangible equity (1)

Tangible equity/ (a)/ 7.86 % 8.12 % 8.31 % 8.30 % 8.34 % tangible assets (b)

Tangible equity/ (a)/ 10.71 % 11.19 % 11.33 % 11.23 % 11.22 % risk-weighted assets (c)

(a)/Tangible book value (d) $ 21.93 $ 22.08 $ 22.13 $ 21.59 $ 21.26 *1,000



COMMON EQUITY TIER 1 CAPITAL (CET1)

Total shareholders' $ 1,741,311 $ 1,768,947 $ 1,779,309 $ 1,759,705 $ 1,741,117 equity

CECL transition 26,000 26,419 26,671 26,829 31,199 adjustment

AOCI-related 32,560 19,080 10,641 16,506 1,051 adjustments

CET1 adjustments and deductions:

Goodwill net of associateddeferred tax liabilities (370,252 ) (370,264 ) (370,276 ) (370,288 ) (371,333 ) (DTLs)

Other adjustments and (4,392 ) (4,817 ) (5,243 ) (5,675 ) (6,190 ) deductions for CET1 (2)

CET1 capital (e) 1,425,227 1,439,365 1,441,102 1,427,077 1,395,844

Additional tier 1 capitalinstruments plus related 60,000 60,000 60,000 60,000 60,000 surplus

Tier 1 capital $ 1,485,227 $ 1,499,365 $ 1,501,102 $ 1,487,077 $ 1,455,844



Common equity tier 1 (e)/ 11.29 % 11.68 % 11.76 % 11.71 % 11.62 % capital ratio (c)

(1)

Calculation = ((net income adjusted for intangible amortization/number of days in period)*number of days in year)/total average tangible equity.

(2)

Includes other intangible assets, net of DTLs, disallowed deferred tax assets (DTAs), threshold deductions and transition adjustments, as applicable.

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2021 ($ in thousands) (unaudited)

Note 10 - Non-GAAP Financial Measures (continued)

Trustmark discloses certain non-GAAP financial measures because Management uses these measures for business planning purposes, including to manage Trustmark's business against internal projected results of operations and to measure Trustmark's performance. Trustmark views these as measures of our core operating business, which exclude the impact of the items detailed below, as these items are generally not operational in nature. These non-GAAP financial measures also provide another basis for comparing period-to-period results as presented in the accompanying selected financial data table and the audited consolidated financial statements by excluding potential differences caused by non-operational and unusual or non-recurring items. Readers are cautioned that these adjustments are not permitted under GAAP. Trustmark encourages readers to consider its consolidated financial statements and the notes related thereto in their entirety, and not to rely on any single financial measure.

The following table presents pre-provision net revenue (PPNR) during the periods presented:

(1) Calculation = ((net income adjusted for intangible amortization/number of days in period)*number of days in year)/total average tangible equity.

Includes other intangible assets, net of DTLs, disallowed deferred tax(2) assets (DTAs), threshold deductions and transition adjustments, as applicable.

TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2021 ($ in thousands) (unaudited)

Note 10 - Non-GAAP Financial Measures (continued)

Trustmark discloses certain non-GAAP financial measures because Management uses these measures for business planning purposes, including to manage Trustmark's business against internal projected results of operations and to measure Trustmark's performance. Trustmark views these as measures of our core operating business, which exclude the impact of the items detailed below, as these items are generally not operational in nature. These non-GAAP financial measures also provide another basis for comparing period-to-period results as presented in the accompanying selected financial data table and the audited consolidated financial statements by excluding potential differences caused by non-operational and unusual or non-recurring items. Readers are cautioned that these adjustments are not permitted under GAAP. Trustmark encourages readers to consider its consolidated financial statements and the notes related thereto in their entirety, and not to rely on any single financial measure.

The following table presents pre-provision net revenue (PPNR) during the periods presented:

Quarter Ended Year Ended

12/31/ 9/30/2021 6/30/2021 3/31/2021 12/31/ 12/31/ 12/31/ 2021 2020 2021 2020



Net interest $ 98,326 $ 98,266 $ 119,423 $ 102,336 $ 111,378 $ 418,351 $ 426,537 income (GAAP)

Noninterest 50,767 54,149 56,411 60,583 66,117 221,910 274,593 income (GAAP)

Pre-provision (a) $ 149,093 $ 152,415 $ 175,834 $ 162,919 $ 177,495 $ 640,261 $ 701,130 revenue



Noninterestexpense $ 119,469 $ 129,600 $ 118,679 $ 121,548 $ 119,894 $ 489,296 $ 466,301 (GAAP)

Less:Voluntaryearly - (5,700 ) - - - (5,700 ) (4,375 )retirementprogram

Regulatorysettlement - (5,000 ) - - - (5,000 ) - charge

Adjustednoninterestexpense - (b) $ 119,469 $ 118,900 $ 118,679 $ 121,548 $ 119,894 $ 478,596 $ 461,926 PPNR(Non-GAAP)



PPNR (a)(Non-GAAP) - $ 29,624 $ 33,515 $ 57,155 $ 41,371 $ 57,601 $ 161,665 $ 239,204 (b)

The following table presents adjustments to net income and select financial ratios as reported in accordance with GAAP resulting from significant non-routine items occurring during the periods presented:

Quarter Ended Year Ended

12/31/2021 12/31/2020 12/31/2021 12/31/2020

Amount Diluted Amount Diluted Amount Diluted Amount Diluted EPS EPS EPS EPS



Net income $ 26,222 $ 0.42 $ 51,217 $ 0.81 $ 147,365 $ 2.34 $ 160,025 $ 2.51 (GAAP)



Significantnon-routinetransactions (net oftaxes):

Voluntaryearly - - - - 4,275 0.07 3,281 0.05 retirementprogram

Regulatorysettlementcharge (not - - - - 5,000 0.08 - - taxdeductible)

Net incomeadjusted forsignificant $ 26,222 $ 0.42 $ 51,217 $ 0.81 $ 156,640 $ 2.49 $ 163,306 $ 2.56 non-routinetransactions(Non-GAAP)





Reported Adjusted Reported Adjusted Reported Adjusted Reported Adjusted (GAAP) (Non- (GAAP) (Non- (GAAP) (Non- (GAAP) (Non- GAAP) GAAP) GAAP) GAAP)

Return onaverage 5.92 % n/a 11.81 % n/a 8.32 % 8.83 % 9.52 % 9.69 %equity

Return onaverage 7.72 % n/a 15.47 % n/a 10.81 % 11.45 % 12.58 % 12.81 %tangibleequity

Return onaverage 0.60 % n/a 1.28 % n/a 0.86 % 0.92 % 1.05 % 1.07 %assets



n/a - not applicable



TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2021 ($ in thousands) (unaudited)

Note 10 - Non-GAAP Financial Measures (continued)

The following table presents Trustmark's calculation of its efficiency ratio for the periods presented:

Quarter Ended Year Ended

12/31/ 9/30/2021 6/30/2021 3/31/2021 12/31/ 12/31/ 12/31/ 2021 2020 2021 2020



Totalnoninterest $ 119,469 $ 129,600 $ 118,679 $ 121,548 $ 119,894 489,296 $ 466,301 expense(GAAP)

Less: Otherreal estate (336 ) (1,357 ) (1,511 ) (324 ) 812 (3,528 ) (1,956 )expense, net

Amortizationof (548 ) (549 ) (553 ) (666 ) (752 ) (2,316 ) (3,052 )intangibles

Charitablecontributionsresulting in (391 ) (350 ) (355 ) (350 ) (375 ) (1,446 ) (1,500 )state taxcredits

Voluntaryearly - (5,700 ) - - - (5,700 ) (4,375 )retirementprogram

Regulatorysettlement - (5,000 ) - - - (5,000 ) - charge

Adjustednoninterest (c) $ 118,194 $ 116,644 $ 116,260 $ 120,208 $ 119,579 $ 471,306 $ 455,418 expense(Non-GAAP)



Net interest $ 98,326 $ 98,266 $ 119,423 $ 102,336 $ 111,378 $ 418,351 $ 426,537 income (GAAP)

Add: Taxequivalent 2,906 2,947 2,957 2,894 2,939 11,704 12,023 adjustment

Net interestincome-FTE (a) $ 101,232 $ 101,213 $ 122,380 $ 105,230 $ 114,317 $ 430,055 $ 438,560 (Non-GAAP)



Noninterest $ 50,767 $ 54,149 $ 56,411 $ 60,583 $ 66,117 $ 221,910 $ 274,593 income (GAAP)

Add:Partnershipamortization 2,455 2,045 1,989 1,522 1,877 8,011 5,700 for taxcreditpurposes

Adjustednoninterest (b) $ 53,222 $ 56,194 $ 58,400 $ 62,105 $ 67,994 $ 229,921 $ 280,293 income(Non-GAAP)



Adjusted (a)+revenue (b) $ 154,454 $ 157,407 $ 180,780 $ 167,335 $ 182,311 $ 659,976 $ 718,853 (Non-GAAP)



Efficiency (c)/ratio ((a) 76.52 % 74.10 % 64.31 % 71.84 % 65.59 % 71.41 % 63.35 %(Non-GAAP) + (b))

View source version on businesswire.com: https://www.businesswire.com/news/home/20220125005343/en/

CONTACT: Trustmark Investor Contacts: Thomas C. Owens Treasurer and Principal Financial Officer 601-208-7853

CONTACT: F. Joseph Rein, Jr. Senior Vice President 601-208-6898

CONTACT: Trustmark Media Contact: Melanie A. Morgan Senior Vice President 601-208-2979